Nowa - the Norwegian Overnight Weighted Average
NOWA - the Norwegian Overnight Weighted Average - is defined as a weighted average of interest rates set in agreements concluded by banks, either directly or via a broker, for unsecured loans in NOK, where the loan is paid out on the same day and repayment occurs on the following banking day. The Nowa rules are adopted by Finance Norway and the calculation agent is Norges Bank (the Norwegian central bank).
The rules describes what the different interest rates represents, the requirements laid on the suppliers of data (the panel banks) and how the rates are to be calculated and published.
Nowa shall be calculated as nominal annual rates for the actual number of days in the year ahead (365 or 366). The percentage return over the term is thus calculated by dividing the interest rate by the actual number of days in the year ahead and multiplying it by the actual number of days to maturity.
There is established a steering group for Nowa to monitor and evaluate the rules, and make recommendations on approvals as panel banks. Panel banks are approved by Finance Norway’s board on Banking and Payment systems.
The panel banks are entitled, but not obliged, to be represented in the steering group.
The Nowa rules entered into force on 26th of September 2011. The rules were last revised on 22th of May 2013, entered into force on 3rd of June 2013.
- Bank1 Oslo Akershus
- DNB Bank ASA
- Danske Bank
- Nordea Bank Norge ASA
- SEB AB
- Sparebanken Vest
- SpareBank 1 SMN
- SpareBank 1 SR-Bank
- SpareBank 1 Nord-Norge