Finansinspektionen (FI) has been commissioned by the Government to report on the bank's internal rules regarding credit granting to companies from the perspective of the environment and sustainability. If necessary, FI shall present proposals for measures that can be included in the banks' credit granting process to promote such a perspective.
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
The market for covered bonds is important for bank funding and therefore financial stability. The requirements for banks to hold more capital and liquidity for their operations have been tightened since the financial crisis. These requirements affect the banks' costs of holding securities in the trading book and so their costs of acting as market makers.
FI today disclosed for the first time the actual capital requirements for the ten largest Swedish banks and credit institutions at the end of the third quarter of 2015. This is to increase clarity with regard to the effects of FI's capital requirements, including Pillar 2.
Summary of the speech by Finansinspektionen's Director General Erik Thedéen at the Centre for Business and Policy Studies' seminar on the economic situation on 19 November 2015.
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
Finansinspektionen publishes the capital needs of the ten largest Swedish banks and credit institutions as of the end of the second quarter 2015.
Finansinspektionen decides to recognize countercyclical buffer rates up to 2.5 per cent that are set by the designated authority of another EEA country. The firms concerned shall use these buffer rates to calculate their firm specific countercyclical capital buffers.
At the Financial Stability Council meeting of 15 June, Finansinspektionen presented its views on the future structure of banks' capital requirements.
In this report, Finansinspektionen, Sveriges Riksbank and the Swedish National Debt Office present a general description of the driving forces behind the rise in household indebtedness. A central conclusion in the report is that indebtedness is largely linked to developments on the housing market.
FI intends to comply with the European Banking Authority's (EBA) guidelines on criteria to assess other systemically important institutions (O-SIIs).
Finansinspektionen publishes the capital needs of the ten largest Swedish banks and credit institutions as of the end of the first quarter 2015.
Handelsbanken has not complied with the money laundering rules. The bank has not conducted risk assessments for all of its customers or obtained sufficient information about customers and their business relations. The bank's system for reviewing transactions has also been deficient.
There have been major deficiencies in Nordea's work to prevent money laundering. This means there is a high probability that if people have tried to launder money or finance terrorism that they could have done so without Nordea having been able to detect this.
Finansinspektionen (FI) establishes methods for assessing Pillar 2 capital requirements for three types of risk: credit-related concentration risk, interest rate risk in the banking book and pension risk.
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
Finansinspektionen publishes today the capital needs of the ten largest Swedish banks and credit institutions as of the end of the fourth quarter 2014.
The European Banking Authority (EBA) has published its opinion regarding the Danish FSA's proposal of a partial waiver from the application of Article 129 (1)(c) of the Capital Requirements Regulation (CRR). Finansinspektionen will also implement the partial waiver within its jurisdicition.
This memorandum describes FI's methods for assessing the capital adequacy requirement within the framework of Pillar 2 for three different types of risk.
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
Finansinspektionen (Swedish Financial Supervisory Authority – FI) considers that a leverage ratio requirement may serve an important function for establishing financial stability in Sweden as a back-stop, which sets a floor for how low the capital adequacy requirement can fall in relation to the banks' gross assets.
FI has tested the resilience of the major Swedish banks to a sharp deterioration in the economy. The study is part of the extensive stress test of 123 European banks coordinated by EBA.
Finansinspektionen presents positions to ensure that the Swedish banking system stands more robustly equipped to withstand future financial crises.
There have been inadequacies in the investment advice that Skandiabanken Aktiebolag has provided through tied agents. The bank has not complied with the rules applicable for receiving commission nor dealt with conflicts of interest in the correct manner.
Finansinspektionen has decided to approve the reorganisation of Sparbanken 1826.
On 3 April, the Government presented a bill regarding strengthened capital adequacy rules.
Finansinspektionen's and The Riksbank's joint internal audit has assessed the supervision and oversight of the financial infrastructures in Sweden on the basis of the "Principles for financial market infrastructures” (PFMIs) which Finansinspektionen use in its supervision and The Riksbank in its oversight.
Finansinspektionen withdraws the authorisation to conduct financing business of Exchange Finans Europe.
In this report, Finansinspektionen (FI) describes the banks' adaptations to higher capital requirements and the effects on households and non-financial firms.
Swedish banks are relatively strong, but they continue to be vulnerable to disruptions on the financial markets, and the development within the Euro zone continues to represent a risk to the Swedish financial system.
Many of the development trends in today’s financial markets raise important issues for FI. For consumers, greater mobility and increasingly complex financial products represent not only more opportunities but also higher risks. FI needs to bring attention to these risks and resolve them.
FI is implementing a risk weight floor of 15 per cent for Swedish mortgages. The floor will be implemented as a supervisory measure within Pillar 2.
This report is based on Finansinspektionen's (FI's) third large mortgage survey. The survey is based on comprehensive material from the eight largest banks in Sweden.
Finansinspektionen finds that guidelines from the European supervisory authorities addressed to competent authorities or financial market participants are equivalent to Swedish general guidelines.
Both the banks' funding cost and lending rates to households and corporations fell sharply during the fourth quarter of 2012 while the banks' margins on new mortgages increased slightly. Lending to Swedish corporations and households increased during the fourth quarter, but at a slower rate than before. During 2013 Finansinspektionen (FI) will investigate potential measures for how credit institutions can increase the awareness of their customers for how the actual lending rates for mortgages are determined.
Swedish banks have already largely adapted to the forthcoming requirements regarding capital adequacy and access to liquidity. The stricter requirements involve a cost, but also help improve stability in the financial system. On the whole, the forthcoming requirements will generate positive effects for the national economy.
Finansinspektionen’s (FI’s) 2012 risk report 2012 continues to focus on unease on financial markets, where the greatest risk to the Swedish financial system is still a deepened sovereign debt crisis in Europe. Because of low market rates, life insurance undertakings are under pressure, and FI now sees a risk of consumers ending up in a squeeze as the firms review their commitments. This year too, FI views the financial advice market with concern. In this market, consumers are being invited to invest in complex products while advisors receive commissions.
The growth rate of lending to households and corporations is decreasing, but remains positive and is clearly higher than the corresponding figure for the eurozone. Banks' margins on mortgages increased in the same period, according to the second quarterly report.
The issues presented in this year’s Supervision Report stem from the work on financial consumer protection, financial stability and the requirements on company owners and management. In addition, the report discusses the increased international work, primarily within the EU.
During 2011, Finansinspektionen (FI) investigated how 11 financial companies market risks management. ‘Market risk’ refers to the risk of loss-incurring value changes in assets and liabilities due to fluctuations in interest rates, foreign exchange rates, stock prices and commodity prices.
In order to strengthen financial stability and avoid future financial crises, new regulations for the banking sector are being prepared. The regulations include higher capital adequacy requirements.
Loan-to-value ratios decreased for the first time in 10 years and the share of households with new loans over 85 percent has fallen by fifty per cent since 2009. These are some of the findings in Finansinspektionen’s follow-up of the mortgage cap.
Sweden has remained relatively stable in a turbulent period but during this time the risk level in the Swedish financial system has also risen. The uncertainty in surrounding markets has meant that banks’ liquidity risks and the impact of low interest rates on life insurance undertakings remain in focus. Finansinspektionen also believes there is a risk that the sale of complex products to consumers will increase.
Finansinspektionen (FI) received an assignment from the Government to report on the implementation of the EU Recommendation on remuneration in the financial services sector, the measures taken to ensure compliance with the new rules and how affected companies have adapted to the recommendations.
Finansinspektionen's annual Supervision Report discusses areas in which fundamental issues with regard to supervision and regulatory development have risen to the forefront and in turn have resulted in new lessons and conclusions.
Finansinspektionen believes the risk level in the Swedish financial sector is lower than last year. Both Sweden’s economy and the situation on the financial market have improved. However, the uncertainty present in foreign markets represents a potential threat to Sweden’s development.
FI's annual Supervision Report describes the lessons learned from the financial crisis as well as more general issues regarding consumer protection.
The concern for being victimised by account fraud is greatly unwarranted, according to FI’s survey of 2,898 private persons. The survey, conducted during 2008, found that an estimated 1 per cent of the adult population was defrauded that year. The majority, 84 per cent, of those with claims were fully or partially refunded. The expectations of being refunded were considerably lower, however.
Finansinspektionen is charged with ensuring that the financial system isstable and efficient and that consumer protection is adequate. We carry outthese assignments by conducting supervision of financial companies, whichincludes business intelligence, the granting of licences, preparation of egulations,operational supervision with controls of how companies act andpotential interventions.
The majority of the Swedish households have a strong personal financial position and save for the long-term. Most of them have access to a bank account and payment services and three out of four pay by the Internet. This is according to the responses of 1,309 households regarding personal finances. The survey was conducted for FI by Svenskt Kvalitetsindex during the first quarter of 2009.
Based on input reported statistical material, we find that the current financial crisis has yet to make any obvious impression in the form of insolvency and credit losses in lending for commercial real estate.
The overall conclusion is that there is a good census of opinion between bank customers and advisors about how the advisory service should work. Both advisors and customers feel that the advice lives up to the legal requirements.
Finansinspektionen (FI) has surveyed the development in the banks’ lending for single-family houses and tenant-owner’s flats. At the end of 2008, Swedish households had approximately SEK 1,800 billion in mortgage loans. The investigated banks’ lending constitutes just under 90 per cent of this.
Five out of eight banks investigated utilised new opportunities to assess certain financial assets at amortised cost instead of fair value in connection with the interim reports for Q3 2008.
IT disruptions are increasing at some companies and decreasing at others. On the whole, the number of disruptions remains at a constant, high level.
The four Swedish big banks have managed relatively well so far in the international bank crisis. Financing risks has been the greatest threat to Swedish banks during the autumn's turbulence. Thanks to measures by the Riksbank (Swedish central bank) and the Swedish National Debt Office, these risks have been managed to a great extent until the financing markets begin to function normally again.
Not everyone has access to payment services such as giro services or internet banking. It is mainly people with a record of non-payment and those without Swedish civic registration or coordination numbers who lack access to such services. Those who are denied payment services are forced to pay their bills through the banks’ counter service which incurs high costs and is time inefficient.
That the payment system functions and can withstand both internal andexternal incidents such as fire, flooding, power failures, etc. is of greatimportance to the national economy.
The Swedish banks have managed relatively well in the international turbulence prevailing on the financial markets. The four major banks made record profits in 2007 and they all have good financial strength. There are, however, risks in the near future as well as in the long-term. Although these risks are relatively serious, no individual risk is considered to pose a threat to the stability. FI continues to closely monitor the development.
The banks’ risk exposures to the Swedish mortgage loan market have increased due to higher mortgage levels and long amortisation periods. The mortgage lending to Swedish households constitutes the largest exposure in the majority of the banks.
According to Finansinspektionen’s investigation, eight scrutinised banks and investment firms primarily have good routines for managing and appraising the trading risks for products that are difficult to assess. However, more can be done in some areas. The undertakings should improve their routines for independent assessment and control of traders’ prices. Some of the undertakings should allocate more resources for their risk control in order to attain a stronger position in terms of business.
The SMS loan companies report that they have improved their routines to identify their customers after an investigation by Finansinspektionen.
Swedish banks are only marginally exposed to the assets that are affected most by this fall's market turbulence. Rather, the increased risks are coupled to increased lending in the Baltic states. This is the finding of FI's report The stability of the Swedish financial sector, which will be submitted to the Government today.
This report discusses Finansinspektionen’s view on the need for regulation andsupervision in the government bond market. FI’s level of ambition in thesupervision of the fixed income market has long been lower than that of itssupervision of the stock market. The reasons for this are primarily historical andno well-documented analysis exists. The need for such an analysis has arisen asthe supervision of financial markets has developed in Europe. In conjunctionwith the introduction of MiFID (the EC Markets in Financial InstrumentsDirective) the need for regulation and supervision in the fixed income markethas been discussed at European level.
This report describes the process that precedes a new issue or initial publicoffering. It clarifies various phenomena that investors should be aware of whenparticipating in this type of transaction, allowing them to understand andevaluate the offer in its entirety.
Finansinspektionen's study shows an increase in the number of attacks on online bank accounts, although in relation to the number of Internet transactions the scope of the problem is limited.
Problems in certain credit market companies with permission to receive household deposits* such as Custodia and Allmänna Kapital are the background to the review carried out by FI. Its main purpose has been to investigate whether the problems that have come to light in those firms now declared bankrupt, exist openly or latently in other credit market companies which take household deposits. FI has also had the aim of investigating whether these firms are complying with financial regulations in a more general sense.
Investors´strong interest in equity-linked bonds is continuing. In the first nine months banks and other financial institutions issued equity-linked bonds and other index-linked bonds to a value of almost SEK 38 billion.
During the autumn of 2005 and spring of 2006 Finansinspektionen carried out a comprehensive review of the operational risk management in fifteen Swedish banks and credit market companies (firms).
On behalf of the government, Finansinspektionen has followed up last year's report "Unsecured credits for consumers". This report sets out the measures that Finansinspektionen has taken, or plans to take, to remedy the shortcomings previously existing in the information and the structure of the contractual terms and conditions and also credit rating. The study covers the same undertakings as last year. We have also studied interest rate trends for unsecured credits in relation to the reference interest rate. During the survey the Swedish Consumer Agency has been consulted.
One of the effects of low interest rates is high housing prices. The resultant high demand for mortgages has meant more aggressive competition in the Swedish mortgage market, with effects such as increased lending ratios and pressure on interest rate margins.
The Basel Committee on Banking Supervision and CEBS have conducted a study on how the new capital adequacy regulations that enter into force next year can be expected to affect the capital requirement for banks. The study is entitled Quantitative Impact Study 5 (QIS 5) and is conducted on data gathered during the autumn of 2005. It encompasses the member countries of the Basel Committee (G10), several EU and EES countries and a handful of other countries.
Finansinspektionen and Datainspektionen (The Swedish Data Inspection Board) have joined forces to examine the market for the sale of overdue accounts.
On behalf of the government, FI has conducted an investigation during 2005 into the fees charged by banks and the information provided concerning cross-border payments, as well as the banks' procedures for cooperation agreements.
Finansinspektionen (FI) has studied how well companies follow FI's regulations and general guidelines regarding the processing of complaints. The study included 196 companies in the banking, fund management, securities and insurance sectors.
Commencing 2007, the reformed Basel Rules - also called Basel II - will be applicable in Sweden and the rest of the EU. Corresponding rules will also be implemented in a number of other developed countries. These rules directly affect all credit institutions and investment firms as well as the au-thorities that engage in supervision and monitoring of financial institutions and markets. However, the institutions' customers will also be affected in very specific ways - interest rates for different types of loan and to different customers will, for example, be affected. Thus, all are affected by the new rules. This in itself represents a good reason to disseminate awareness of the new regulatory regime and its various constituent parts.
Finansinspektionen (FI), on assignment from the Swedish Ministry of Finance, hasexamined the market for unsecured credits for consumers, that is, credit without theprovision of collateral. The survey was conducted in cooperation with the SwedishConsumer Agency.