KBN is a direct continuation of its predecessor, Norges Kommunalbank, and has for 85 years been the primary provider of loans to the local government sector in Norway.

With an AAA/ Aaa credit rating, KBN was established by an act of Parliament in 1926 as a state administrative body and started operations in 1927.

Today, KBN is defined as a state instrumentality serving a public policy function of providing low-cost funding to Norwegian municipalities.

The agency’s mandate also includes promoting competition in the market, thereby facilitating the efficient provision of public services in Norway.

KBN is the largest provider of loans to local authorities in Norway, commanding a market share of approximately 50 percent.