In recent years, there has been strong international focus on risk in the payment system and most countries have implemented measures to reduce this risk. In this article, we will discuss the main aspects of Norges Bank’s and the Norwegian banking industry’s efforts to reduce settlement risk in Norway’s payment system. The establishment of Norges Bank’s settlement system (NBO) in 1997 was a milestone in this work. A comparison of settlement risk today with risk before the establishment of NBO shows a considerable reduction, but there is scope for further reduction
