Supervision

Supervision is one of FI's most important activities. We conduct ongoing supervision in the form of SREP and supervisory activities such as investigations.

Banking supervision aims to secure sound risk management in banks and capital market companies.

The major Swedish banks are systemically important through their dominant position on the Swedish financial market, their complex business models and their extensive cross-border operations. They are therefore subject to more in-depth supervision.

It is also important to monitor the banking sector from other aspects of FI's mandate, such as consumer protection and sustainability.

Firms under supervision

The Banking Section at FI has primary supervisory responsibility for more than 100 firms, mainly banks and credit market companies.

Supervisory colleges

The supervision of large banks with significant operations in other EU countries is conducted jointly in supervisory colleges. These colleges are composed by representatives from the supervisory authorities in the EU countries where the bank has significant operations. Work in the colleges is governed by cooperation agreements between the countries' authorities. FI chairs the supervisory colleges for the large Swedish banks and is a member of colleges of non-Swedish banks with significant operations in Sweden.

Supervisory review and evaluation process

FI's ongoing supervision work is largely conducted within the Supervisory Review and Evaluation Process (SREP). The aim of SREP is to evaluate the financial firms' risk management and to decide on capital and liquidity requirements. SREP is conducted annually for the largest banks and less frequent for category 2-4.

As a part of SREP, FI conducts risk assessments for all major areas of risk, such as credit risk, liquidity risk, market risk and operational risk. These assessments are based on the information in the financial firms' internal capital adequacy assessment process (ICAAP) and other information received by FI as part of its supervision. For several significant types of risk FI also uses its own approach to assessing the firms' Pillar 2 capital needs.