Background and objective
Over the past two decades, central banks have taken on a greater role in managing economic crises. This trend has been particularly evident since the outbreak of the global financial crisis in 2007, the Covid-19 pandemic, the climate crisis and the rise in geopolitical tensions. This is most visible in the unprecedented scale of central bank asset purchases used to stabilise markets and economies. Central banks' competencies have also increasingly overlapped with those of other public institutions, such as parliaments and financial supervisory authorities in their crisis management efforts.
The project's overall objective has been to examine how domestic and international law – both public and private – facilitates and limits this expanding role. The primary objectives have been to:
- Examine which monetary policy tools central banks can legitimately implement in financial markets.
- Analyse how, and for what, central banks are held accountable when conducting open market operations.
- Analyse how a fragmented legal framework both supports and constrains central banks in pursuing financial and monetary stability – including whether public-good considerations are disregarded when a central bank acts as a private-law actor in market operations.
Secondary objectives have been to:
- Build and strengthen academic scholarship on central banking and financial markets at the Faculty of Law, University of Oslo, in cooperation with international experts.
- Broaden knowledge of the legal aspects of central banking among Norwegian central bankers, policymakers, law students and the public, extending the debate beyond macroeconomists.
The project builds on the previous project “International Financial Market Regulation, Institutions and Efficiency” funded by the Finance Market Fund.
Results
The project has comprehensively addressed all three primary objectives. The objectives were formulated broadly from the outset, allowing the project to respond to real-world developments as they arose. The sanctions imposed on the Russian central bank following Russia's full-scale invasion of Ukraine in 2022 prompted a sharper focus on the international legal framework governing central banks than originally planned. This flexibility proved fruitful, allowing the project to contribute to a revived international debate on central bank law.
Bringing together legal, political-economy and historical perspectives – through cooperation with new formal and informal partners – has been a particular strength, producing co-authored papers and interdisciplinary seminars that brought together economists, political scientists, historians and lawyers.
The secondary objectives have also been met. Findings have been presented regularly at legal research groups at the Faculty of Law, and the project organised several conferences, seminars and workshops – online and in person – with national and international scholars and practitioners, reaching central bankers, policymakers, law students and the general public in Norway and abroad.
Central banking law has been permanently integrated into the elective course Financial Market Law and Regulation (JUS1880/5880) at UiO. In 2024, the postdoctoral researcher employed on the project, Astrid Iversen, was appointed to a permanent position as Associate Professor at the Faculty of Law, UiO, and in 2026 she took over main responsibility for this course. This ensures continued research and teaching expertise in central banking law at UiO beyond the project period.
Featured past events
Central banks and international law
Time and place: 5 - 6 June 2023 at Universite Paris 1 Sorbonne- Panthéon, Paris, France
The conference shed light on how international law shapes central bank policies and how central banks shape international law. The conference was held at Université Paris 1 Panthéon-Sorbonne, and was co-organized by Inland Norway University of Applied Sciences, the Department of Private Law and PluriCourts at the University of Oslo, Paris 1 Panthéon-Sorbonne and Centre Universitaire de Norvège à Paris.
Programme
Day 1: 5 June
- Welcome and introduction
Astrid Iversen, Mads Andenæs, Paolo Palchetti - Panel 1: Immunity and central banks
Moderator: Geir Ulfstein, University of Oslo- The general regime of the immunity of central bank
Christian Tams, Université Paris 1 Panthéon Sorbonne / University of Glasgow - Diverging development of rules of immunity of central bank and sovereign debt related assets
Astrid Iversen, Inland Norway University of applied Sciences/ University of Oslo - Sovereign wealth funds as integrated parts of central banks and immunity
Regis Bismuth Sciences Po
- The general regime of the immunity of central bank
- Panel 2: Sanctions and central banks
Moderator: Charlotte Beaucillon, Université de Lille- The role of central banks in the implementation of financial sanctions
Chiara Zilioli, Director General Legal Services the European Central Bank - Central banks as targets of sanctions (the targeted sanctions regime & proportionality, freezing and confiscation of central bank assets as solidarity measure, sanctions and immunity)
Daniel Franchini, University of Sheffield - Indirect sanctions - recognition of government and freezing and seizing of central bank assets
Paolo Palchetti, Université Paris 1 Panthéon Sorbonne - Central banks in investor-State litigation, issues of jurisdiction, standing and attribution
Filippo Fontanelli, University of Edinburg
- The role of central banks in the implementation of financial sanctions
Day 2: 6 June
- Panel 3: Informal international law making and central banks
Moderator: Genevieve Bastid Burdeau, Université Paris 1 Panthéon Sorbonne- The international legal infrastructure of central bank swap lines
Aliénor Nina Burghartz, University of Zurich - Network for greening of the financial system and global administrative law
Jan-Henrik Hinselmann, Göettingen Universität - The emergence of a new global monetary system: the Central Bank Digital Currencies (CBDCs) and the law-making of a new type of money
Camila Villard Duran, ESSCA France - International Implications of CBDCs’
Cristos Hadjiemmanuil, Universty of Piraeus
- The international legal infrastructure of central bank swap lines
- Panel 4: Complying with and implementing international obligations
Moderator: Cristiane Derani, Universidade do Estado de Santa Catarina- Capital control in international law
Michael Waibel, Universität Wien - Central Banking and Sustainable Development: Perspectives on Swap Lines and Debt Crisis Resolution Mechanisms in International Law
Karina Patricio Lima, University of Leeds - Climate obligations: central banks’ implementation of international climate obligations in monetary policy and financial stability decisions (potential for climate change litigation)
Javier Solana, University of Glasgow - Central banks and international anti-corruption and white washing obligations
Nicola Bonucci, Partner at Paul Hastings, former Director for Legal Affairs for the OECD.
- Capital control in international law
Seminar on The European Regulatory Approach to Sustainable Finance
Time and place: 12 March 2024 at 8:30 AM - 5:00 PM in Auditorium 4, Domus Academica.
The conference took stock and assessed the implications for the Norwegian financial markets.
Programme
- Welcome by Trude Myklebust, Postdoc, Department of Public and International Law, University of Oslo and Mirella E. Grant, Guest Researcher, Department of Private Law, University of Oslo
- Part I: The international perspective
Moderator: Mads Andenæs, Professor, Department of Private Law, University of Oslo- Sustainable Finance and international initiatives: the transition to low emissions (40 min. 5 min. Q&A)
Martin Skancke, self-employed consultant at Skancke Consulting, former head of the Asset Management department at the Ministry of Finance, former chair of the Norwegian Climate Risk Commission and the Norwegian 2050 Climate Change Committee - The European regulation of sustainable finance - taking stock of the regulatory initiatives and institutional issues in EU regime (60 min.+ 15 min. Q&A)
Kern Alexander Professor Dr.iur., Faculty of Law, University of Zurich
- Sustainable Finance and international initiatives: the transition to low emissions (40 min. 5 min. Q&A)
Part II: The Norwegian perspective
Moderator: Mirella E. Grant, Guest Researcher, Department of Private Law, University of Oslo- Implementing the EU regulatory package on sustainable finance in Norwegian legislation – status and future steps (25 min. + 5 min. Q&A)
Erling G. Rikheim, Deputy Director General, Norwegian Ministry of Finance, Financial Markets Department - Micro-prudential supervision and enforcement – good practices for climate-related and environmental risk management (25 min. + 5 min. Q&A)
Anders Hole, Deputy Director General, Finanstilsynet (FSA), Banking and Insurance Supervision - Implications of the new regulation on sustainable finance (25 min. + 5 min. Q&A)
Elise Johansen, Lawyer specializing in sustainability-, climate- and environmental law, Partner at Wikborg Rein, former professor at the University of Tromsø - Sustainable finance and compliance in practice (20 min. + 5 min. Q&A)
Stefan Bochtler, Managing Director & Partner, Boston Consulting Group
Moderator: Trude Myklebust, Postdoc, Department of Public and International Law, University of Oslo- Norway’s Nature Risk Commission’s report (NOU 2024: 2) – Main takeaways and the way forward
Trude Myklebust, Member of the Nature Risk Commission - The relevance of climate risks for monetary policy and financial stability (25 min. + 5 min. Q&A)
Henrik Borchgrevink, Director, Norges Bank, Financial Stability Department - Norges Bank Investment Management – tackling climate risk and nature-related risks from an investor perspective (25 min. + 5 min. Q&A)
Christopher Wright, Head of ESG Risk Monitoring, Norges Bank Investment Management - Sustainable finance in a macroeconomic perspective (25 min.+ 5 min. Q&A)
Klaus Mohn, Rector and professor, University of Stavanger
- Implementing the EU regulatory package on sustainable finance in Norwegian legislation – status and future steps (25 min. + 5 min. Q&A)
Independent agencies regulating and supervising economic activities – justification, intellectual background and legitimacy
Time and place: 5 December 2022 at 12:00 PM - 4:00 PM in Kjerka, Domus Media Vest.
The workshop discussed the development of granting an increasing number of administrative authorities independence, examine the place which these bodies occupy in the constitutional arrangement, and their legitimacy. It was arranged by BI Norwegian Business School, Inland Norway University of Applied Sciences and University of Oslo.
Programme
Session 1
- Independent Administrative Authorities in a Norwegian Context
Professor Mads Andenæs (University of Oslo) - Assessing institutional legitimacy
Associate professor Johan Wibye (HINN) - EU law requirements for the independence of energy regulators
Professor Catherine Banet (University of Oslo) - European Supervisory Authorities as Shadow Rulemakers
Associate professor Heikki Marjosola (University of Helsinki)
Session 2
- Central Banks’ expanding role and institutional independence
Post doc/associate professor Astrid Iversen (University of Oslo and HINN) - Inapplicable or invalid? – The implementation of EU Financial Supervisory Authorities decision in Norwegian law
Professor Tarjei Bekkedal (University of Oslo) - Judicial review in merger cases: Complex economic assessments in the application of the SIEC-test in merger cases, and how this impacts substantive judicial review in the CJEU
Research fellow Marte Reisæter, University of Bergen - From meta-regulation to technocratic fine-tuning: The regulatory powers of administrative authorities in the EU law bank capital requirements framework
Associate professor, Sjur Swensen Ellingsæter, BI Norwegian Business School
Central banks’ expanding roles & control mechanisms
Time and place: 10 June 2022 at 9:00 AM - 4:30 PM in Auditorium 6, Domus Academica
The workshop discussed central banks’ expanding roles, independence and control mechanisms. Among other issues, it examined the historical origins of central bank independence, the extent to which courts and tribunals are willing to review the legality of central banks’ decision-making, how this is influencing central banks’ policies, and what alternative mechanisms exist for checks and balances on central bank policies.
Programme
- Session 1: The relative independence of central banks - Intellectual and institutional background for independent central banks
- Welcome
Mads Andenas, Professor in Law at University of Oslo - Instrument Central Bank Independence – the Norwegian Perspective
Helge Syrstad, Lawyer at Norges Bank (the Norwegian central bank) - Central bank independence in a historical context
Lars Frederik Øksendal/ Gjermund Forvang Rognved - Sovereign Solvency and the Fiscal-Monetary Nexus: A Core-Periphery Approach
Karina Patricio Ferreira Lima, Lecturer in commercial law, University of Leeds - The past and future of on instrumental independence of central banks
Bent Sofus Tranøy, Professor at Inland Norway University for Applied Sciences - Discussion
- Welcome
- Session 2: Judicial review of central bank decisions and policies
- Judicial review of central banks in Germany
Andreas Paulus, Professor in law at Göttingen Universität and former Judge at the Bundesverfassungsgericht - The German Constitutional Court and Central Bank Independence
Michael Waibel (online), Professor in law at the University of Vienna - Discussion
- Judicial review of central banks in Norway
Tarjei Bekkedal, Professor in law at the University of Oslo - Central Banks, sovereign immunity and non-monetary policy activities
Astrid Iversen, Postdoc/ Associate Professor on leave, University of Oslo/ Inland Norway University for Applied Science - Discussion
- Judicial review of central banks in Germany
- Session 3: Other control mechanisms
- Investment law and banking supervision
Yuliya Chernykh (online), Associate professor at Inland Norway University for Applied Sciences - Discussion
- The IMF surveillance of central banks’ policies: the case of capital controls
Ambroise Fahrner, PhD Fellow at Paris Nanterre University/ Humboldt University - Discussion
- Investment law and banking supervision
- Session 4: Expansion of central bank tasks & the need for reform of central bank control mechanisms
- The creation of a “superministry” – the European Central bank, crisis management and bureaucratic power
Ingrid Hjertaker, PhD Fellow at Inland Norway University for Applied Sciences - The legality of central bank liquidity support
Thoravald Grung Moe - Discussion
- The Case for Intra-Executive Accountability in the Banking Union
Matthias Goldmann, Professor at ESB Universität, Max Planck Institute Heidelberg - Discussion
- Concluding remarks
- The creation of a “superministry” – the European Central bank, crisis management and bureaucratic power
