A stable, well-functioning financial market for allA stable, well-functioning financial market for allCapital requirements for Swedish banks
2023
FI extends the risk weight floor for Swedish mortgage exposures
FI has decided to extend the risk weight floor by two years, from 31 December 2023 to 30 December 2025.
FI leaves the countercyclical buffer rate unchanged
In accordance with its assessment in the most recent stability report, FI is leaving the countercyclical buffer rate unchanged in the fourth quarter. The buffer rate of 2 per cent, which was applied starting on 22 June 2023, shall thus continue to apply. The countercyclical buffer guide is calculated at 0 per cent.
Aros receives warning and administrative fine
Finansinspektionen has decided that Aros Kapital will receive a warning and an administrative fine of SEK 45 million.
Banking package close to completion
On 6 December, the EU Member States approved a banking package that implements the last parts of the Basel III agreement in the EU. The European Parliament is also expected to approve the agreed rules in the near future.
FI Analysis No. 41: Commercial real estate firms may need to reduce their debt
In this analysis, we estimate how much Swedish listed and larger privately owned commercial real estate firms need to reduce their debt in a climate of rising financing costs and falling property values. We calculate the firms need to reduce their debt to maintain certain levels of interest coverage ratio and loan-to-value.
Stability in the Financial System (2023:2): Adjustments to higher interest rates remain to be made
The higher interest rate means that households and companies need to make adjustments to their finances. Finansinspektionen (FI) is now seeing a decline in risk-taking. However, the change in the state of the economy and uncertainty regarding how long the higher interest rates will remain pose a risk to financial stability. Commercial real estate undertakings with high debt are particularly at risk should the interest rates remain high. These are the conclusions of the second Stability Report of the year.
Capital requirements of Swedish banks as of Q3 2023
Finansinspektionen publishes the capital requirements of the largest Swedish banks and credit institutions that belong to supervisory categories 1 and 2 as of the end of Q3 2023.
European Commission approves extension of the risk weight floor for Swedish mortgages
The European Commission has announced that it does not intend to object to FI's intention to extend the current risk weight floor for Swedish mortgages. This means that FI may implement the measure.
Protect consumers’ access to payment accounts
Banks restrict consumers’ access to payment accounts more than is necessary to manage money laundering risks. We want to see stricter requirements on banks to make assessments of consumers on an individual basis. Banks should also consider whether they can offer a more limited range of services instead of closing a customer’s account.
FI notifies the EU regarding extension of the existing risk weight floor for Swedish mortgages
FI notifies the EU regarding extension of the existing risk weight floor for Swedish mortgages
FI leaves the countercyclical buffer rate unchanged
In accordance with its assessment in the most recent stability report, FI is leaving the countercyclical buffer rate unchanged. The buffer rate of 2 per cent, which was applied starting on 22 June 2023, shall thus continue to apply. The countercyclical buffer guide is calculated at 0 per cent.
New risk weight floors for bank loans to commercial properties
Finansinspektionen has decided to introduce risk weight floors for exposures towards the commercial real estate sector according to article 458 in CRR. At the same time the current risk weight floor under Pillar 2 will be removed. The new floors will enter into force on 30 September 2023.
Capital requirements of Swedish banks as of Q2 2023
Finansinspektionen publishes the capital requirements of the largest Swedish banks and credit institutions that belong to supervisory categories 1 and 2 as of the end of Q2 2023.
Large Swedish banks show resilience in EU stress test
The five largest Swedish banks are resilient and have the ability to withstand a sharp deterioration in market conditions, based on the stress test conducted by the European Banking Authority (EBA).
Consumer Protection Report 2023
The risks given the highest priority in FI’s consumer protection work for 2023 are unaffordable lending, unsuitable investment products and investment fraud.
European Commission approves introduction of risk weight floors for bank loans to commercial real estate
The European Commission has announced that it does not intend to object to FI's intention to introduce risk weight floors for bank loans to commercial real estate. This means that FI may implement the measure.
Open finance in Sweden
Digitalisation introduces both opportunities and risks to the financial market. After conducting a new survey, FI has noted that broader regulation on how customer data can be shared with third-party providers could make it easier for consumers to compare financial products such as occupational pensions and mortgages.
Report: Banks’ administration of amortisation requirement exemptions
Finansinspektionen has conducted a survey into banks' administration of amortisation requirement exemptions, as an assignment from the government. The survey shows that banks have primarily handled amortisation requirement exemptions well. Banks have improved their procedures for handling exemptions, which have increased due to increased pressure on households' finances and more widespread knowledge within society about the possibility of receiving an exemption. The banks' improved procedures are an adjustment to this change.
Reciprocation of Norwegian systemic risk buffer
Finansinspektionen has reciprocated the Norwegian systemic risk buffer.
Stability in the Financial System (2023:1)
Since the publication of the stability report last autumn, inflation has slowed somewhat in the large economies but is still significantly higher than the central banks’ inflation targets. Monetary policy has therefore been tightened further, and interest rates continued to rise. High inflation and rising interest rates mean that the forecasts for global economic development continue to be weak.
Updated approach to assessing Pillar 2 guidance for Swedish banks
Finansinspektionen has decided on an updated approach for assessing the size of the Pillar 2 guidance for Swedish banks. The updated method contains in part new intervals and an upper limit on how much the outcome of the sensitivity-based stress test can contribute to the final guidance.
Capital requirements of Swedish banks as of Q1 2023
Finansinspektionen publishes the capital requirements of the largest Swedish banks and credit institutions that belong to supervisory categories 1 and 2 as of the end of Q1 2023.
FI notifies the EU regarding the introduction of new risk weight floor for commercial real estate
Finansinspektionen has notified the Commission and the European Systemic Risk Board (ESRB) that it intends to introduce weight floor for commercial real estate in accordance with Article 458 of the CRR. This will replace the current Pillar 2 risk weight floors for exposures secured by commercial real estate. The measure is planned to be effective from 30 September 2023.
FI welcomes inquiry into macroprudential policy
FI has taken several measures since 2010 to reduce the risks associated with households’ high levels of debt. These measures include the amortisation requirements and the mortgage cap. FI welcomes the Government’s announcement today presenting an inquiry to look more closely at how these measures have functioned.
FI proposes update to its approach for assessing Pillar 2 guidance for Swedish banks
Finansinspektionen presents a proposal for an update to its approach for assessing the size of the Pillar 2 guidance for Swedish banks. The proposal entails in part new intervals and an upper limit on how much the outcome of the sensitivity-based stress test can contribute to the final guidance. Comments on the proposal should be submitted to FI no later than 2 May.
Proposal for new risk weight floors for bank loans to commercial properties
FI is proposing to introduce risk weight floors for exposures towards the commercial real estate sector according to article 458 in CRR. At the same time the current risk weight floor under Pillar 2 would be removed. The new floors are proposed to enter into force on 30 September 2023.
FI reciprocates the extension of Norwegian risk weight floors
Finansinspektionen (FI) has passed a decision to reciprocate the Norwegian Ministry of Finance’s decision to extend average risk weight floors of 20 per cent for retail exposures collateralised by real estate in Norway and of 35 per cent for corporate exposures collateralised by real estate in Norway.
Rising interest costs putting pressure on mortgagors
Mortgagors are under pressure from rising interest rates. At the same time, the majority of new mortgagors continue to have good margins in their personal finances. These are the conclusions drawn by Finansinspektionen in this year’s Swedish Mortgage Market report, which is being presented today.
The Swedish Mortgage Market 2023
Mortgagors are under pressure from rising interest rates. At the same time, the majority of new mortgagors continue to have good margins in their personal finances. These are the conclusions drawn by Finansinspektionen in this year’s Swedish Mortgage Market report, which is being presented today.
IMF assessment of the financial sector in Sweden is complete
During 2022, the International Monetary Fund (IMF) carried out a special assessment of the financial sector in Sweden, a so-called FSAP (Financial Sector Assessment Program). FSAPs are conducted regularly for member countries with systemically important financial markets. The most recent FSAP for Sweden by the IMF was in 2016.
Swedbank receives a remark and an administrative fine
Swedbank is being issued a remark and must pay an administrative fine of SEK 850 million.
FI leaves the countercyclical buffer rate unchanged
FI leaves the countercyclical buffer rate unchanged. The buffer rate of 2 per cent, which will be applied as of 22 June 2023, shall thus continue to apply. The countercyclical buffer guide is calculated at 0 per cent.
Swedbank receives a remark and an administrative fine
Swedbank is receiving a remark for the bank’s lack of internal control following a change to a business-critical IT system last year. The bank must also pay an administrative fine of SEK 850 000 000.
Capital requirements of Swedish banks as of Q4 2022
Finansinspektionen publishes the capital requirements of the largest Swedish banks and credit institutions that belong to supervisory categories 1 and 2 as of the end of Q4 2022.
2022
2022:1 Asylum seekers’ access to financial services
In this document, FI states its position on asylum-seeking refugees’ access to financial services in cases where the asylum seeker is lacking identity documents. The position replaces FI's previous memorandum (FI Ref.16-2898).
FI Analysis No. 39: Are the capital buffers fulfilling their purpose?
The minimum requirement for own funds and eligible liabilities (MREL) is designed in such a way that the banks can breach it before they breach the capital requirements. As a result, this can reduce the usability of the capital buffers. This is shown in FI’s analysis of how the capital buffers are impacted when a bank must meet both MREL and the capital requirements.
FI maintains level of systemic risk buffer for major banks
The three major banks, SEB, Handelsbanken and Swedbank, will continue to maintain a systemic risk buffer of 3 per cent at group level. This decision was made following FI’s biennial review of the systemic risk buffer in accordance with the European Capital Requirements Directive.
Länsförsäkringar Bank is issued a remark and must pay administrative fine
Länsförsäkringar Bank has been deficient in its work to prevent money laundering and terrorist financing. The bank is therefore being issued a remark and must pay an administrative fine of SEK 90 million.
FI leaves the countercyclical buffer rate unchanged
FI leaves the countercyclical buffer rate unchanged. The buffer rate of 2 per cent, which will be applied as of 22 June 2023, shall thus continue to apply. The countercyclical buffer guide is calculated at 0 per cent.
Länsförsäkringar Bank recieves a remark and must pay an administrative fine
Länsförsäkringar Bank has been deficient in its compliance with the anti-money laundering regulations. Finansinspektionen is therefore issuing Länsförsäkringar Bank a remark that will be accompanied by an administrative fine of SEK 90 million.
A strategy to prevent greenwashing
Finansinspektionen will prevent greenwashing in the financial sector through preventive measures and supervisory activities. Today, in a new report that is submitted to the government, FI presents a strategy to prevent greenwashing.
Finansinspektionen’s strategy to prevent greenwashing
FI’s strategy for preventing greenwashing in the financial sector aims to safeguard the trust in sustainable investments and a sustainable finance market.
Roadmap for sustainable finance
In 2019, FI’s overarching mandate was expanded to include a responsibility to ensure that the financial system contributes to sustainable development. FI is also the responsible supervisory authority for a number of new regulations related to sustainable finance that are the result of the EU’s ambitious sustainability agenda.
Macro-based stress tests of Swedish banks: results and method, Autumn 2022
Major Swedish banks demonstrate considerable resilience in the stress test Finansinspektionen (FI) conducted in 2022. The test identifies the potential effects on the five largest Swedish banks’ financial positions when interest rates and inflation increase. This memorandum (only available in Swedish) describes the method behind the stress test and its results.
Financial stability risks are increasing on the back of rising interest rates and a weakening economy
Rising interest rates, decreased risk-taking and a slowing economy are weighing on highly indebted commercial real estate firms and households. The rapid transition to higher interest rates and a decreased willingness to take risk means financial stability risks have increased since spring. At the same time, this transition may lead to lower risk-taking and indebtedness in the long run, thus lowering stability risks.
Stability in the Financial System (2022:2)
High inflation has led to rapidly rising interest rates. Given the current rapid change in conditions, both participants on the financial markets and borrowers need to transition quickly. In the short term, this means elevated risks and greater uncertainty. The already high risks in the commercial real estate sector have continued to increase.
Capital requirements of Swedish banks as of Q3 2022
Finansinspektionen publishes the capital requirements of the largest Swedish banks and credit institutions that belong to supervisory categories 1 and 2 as of the end of Q3 2022.
Borrower-based measures following high inflation and rising interest rates
Changing or pausing the amortisation requirements is not an accurate or appropriate measure for helping the households with the greatest need for financial support to handle their higher costs. This is the conclusion of FI’s evaluation of how the amortisation requirements impact households with lower incomes and small margins in today’s difficult economy.
Reciprocation of Norwegian systemic risk buffer
Finansinspektionen has reciprocated the Norwegian systemic risk buffer.
Funds with sustainable investment as its objective
The Swedish Financial Supervisory Authority, Finansinspektionen (FI) has conducted an in-depth analysis of how managers of funds registered in Sweden that have sustainable investment as its objective (so-called Article 9 funds) meet the requirements on sustainability-related disclosures in the pre-contractual information they must provide to investors.
Erik Thedéen: Adjustments needed on the commercial real estate market
Erik Thedéen, Director General of Finansinspektionen (FI), spoke at the Öresundsmarknaden conference about FI’s view on the commercial real estate market.
FI leaves the countercyclical buffer rate unchanged
FI leaves the countercyclical buffer rate unchanged. The buffer rate of 2 per cent, which will be applied as of 22 June 2023, shall thus continue to apply. The countercyclical buffer guide is calculated at 0 per cent.
Money remittance provider Moneygram must resolve anti-money laundering deficiencies
The foreign money remittance provider Moneygram International SPRL has not had a sufficient scope in the general risk assessment of its operations in Sweden to its assessment of the risk of being used for money laundering or terrorist financing. Therefore, FI has decided to issue an injunction to Moneygram to resolve the deficiencies by 30 December of this year.
Moneygram receives injunction to take remedial action
Moneygram International SPRL has not applied a sufficient scope to its assessment of the risks of its operations in Sweden being used for money laundering. Moneygram must resolve these deficiencies no later than 30 December 2022.
Unclear information about sustainable funds
The disclosures provided about funds with sustainable investment as their objective are often unclear. This is the conclusion of an in-depth analysis conducted by Finansinspektionen (FI). In many cases, the disclosures provided in the funds’ prospectuses need to be clearer and more specific.
Commercial real estate debt, non-banks, and the stability of the financial system
Karin Lundberg, Executive Director of Banking, FI, talked about commercial real estate debt, non-banks, and the stability of the financial system in a speech at the UBS Annual Nordic Financial Services Conference.
Capital requirements of Swedish banks as of Q2 2022
Finansinspektionen publishes the capital requirements of the largest Swedish banks and credit institutions that belong to supervisory categories 1 and 2 as of the end of Q2 2022.
Erik Thedéen: Current assessment of financial stability
FI’s Director General Erik Thedéen participated in a panel discussion on the opportunities and risks associated with increased application of artificial intelligence and machine learning within lending and advice to households. Before he described FI’s view on this topic, Thedéen commented briefly on FI’s current assessment of the stability of the Swedish financial system.
FI presents new Pillar 2 method for pension risk in credit institutions
Finansinspektionen presents here a new Pillar 2 method for assessing an additional own funds requirement for pension risk in credit institutions.
Decisions regarding reciprocation of macroprudential measures in three EU countries
Finansinspektionen has passed decisions concerning reciprocation of macroprudential measures in Lithuania, Belgium and the Netherlands.
Svea Bank receives a remark and an administrative fine
Svea Bank is being issued a remark and must pay an administrative fine of SEK 45 million.
Resurs Bank receives a remark and an administrative fine
Resurs Bank is being issued a remark and must pay an administrative fine of SEK 50 million.
The countercyclical buffer rate will be raised
FI has decided to raise the countercyclical buffer rate to 2 per cent, which is its neutral level. This was already communicated in the report Stability in the Financial Markets. Due to the 12-month implementation period, this rate will start to go into effect at the end of June 2023.
Svea Bank and Resurs Bank receive remarks for insufficient credit assessments
Svea Ekonomi, which has now merged with Svea Bank, and Resurs Bank have been deficient in their credit assessments of consumers who received large unsecured loans. Both banks are therefore receiving a remark and an administrative fine of SEK 45 million and SEK 50 million, respectively.
FI would like to see data on declined bank accounts
Finansinspektionen views seriously the complaints from consumers who have been denied a bank account, and the authority is now encouraging banks to carefully maintain data on how many people are experiencing problems opening an account. This data will give a clearer overview of the situation and help find solutions.
It is now possible to update the installed application for periodic reporting
Rapporteurs need to update the application for periodic reporting that they have installed locally. The new version is now available to download and install.
Rising interest rates put pressure on indebted households and firms
Interest rates are rising rapidly in the wake of high inflation. High interest rates and lower risk appetite are placing downward pressure on risk-taking and asset prices. In the long term, this can slow the growth of debt and benefit financial stability. However, the large debts that built up over the extended period of low interest rates are putting pressure on highly indebted households and firms.
FI intends to raise the countercyclical buffer rate to 2 per cent
Finansinspektionen (FI ) intends to raise the countercyclical buffer rate to 2 per cent in Q2 2022.
Stability in the Financial System (2022:1)
Interest rates and interest rate expectations have increased in 2022 due to high and rising inflation. One sector that is vulnerable to rising interest rates is the commercial real estate sector. FI has also noted that liquidity on the bond markets has decreased, and the functionality of the corporate bond market is once again impaired.
Nordnet Bank receives a remark and an administrative fine
Nordnet Bank is being issued a remark and must pay an administrative fine of SEK 100 million.
