A stable, well-functioning financial market for allA stable, well-functioning financial market for allNews & Published Material
Here you can find everything that has been published in different news lists on www.fi.se.
2021
Application for administrator authorisation – STIBOR may continue to be used while FI evaluates the application
Swedish Financial Benchmark Facility AB (SFBF) submitted an application to Finansinspektionen (FI) on 27 December 2021 to become an authorised administrator in accordance with the EU’s Benchmark Regulation (BMR).
Erik Thedéen: Crypto-assets today and in the future
” Ultimately, this is about energy efficiency. Energy is a scarce resource, and as a society, we have invested heavily in energy-efficiency improvements across all sectors. We need to consider a similar technology shift for crypto-assets.”
Recommended actions in the event STIBOR is no longer provided
The Swedish Bankers’ Association published a recommendation yesterday on the actions users of the STIBOR reference rate should take if STIBOR were no longer provided. Finansinspektionen (FI) would therefore like to clarify how we will issue statements, if necessary, in the event STIBOR ceases to be provided.
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 2021 to 30 December 2023.
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 0 per cent, which was applied starting on 16 March 2020, shall thus continue to apply. The countercyclical buffer guide is set at 0 per cent.
Updates in reporting AML
New reporting questions in 2022
FI Supervision 19: Credit institutions’ management of counterparty risk and CVA risks
FI has conducted an investigation into a number of credit institutions’ exposures, risk measurement and management of counterparty risk and credit valuation adjustment (CVA) risk related to positions in financial derivatives.
FI Analysis 35: Lender significance for repayment problems and debt at the Swedish Enforcement Authority
There are different types of lenders. They offer different types of loans, and their risk tolerance varies. The risk tolerance is evident in their business model, which consists in part of how they conduct their credit assessment. There are also different types of borrowers. Some want small loans, and others want big loans. Both the lender’s credit assessment and the borrower’s repayment capacity are often better for large loans. The small loans represent a large share of early repayment problems – reminders and collection notices. But the borrower can often pay back small loans before they are registered with the Swedish Enforcement Authority.
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.
Capital requirements of Swedish banks as of Q3 2021
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 2021.
Resilience is needed as the risks in the commercial real estate sector increase
The economic recovery has been stronger than expected this year, in part due to strong support measures during the pandemic. At the same time, risks are building up, writes Finansinspektionen (FI) in its second stability report of the year. The report is being presented today by Director General Erik Thedéen and Chief Economist Henrik Braconier at a press conference.
Stability in the Financial System (2021:2)
Sweden’s economy has largely recovered and there is good access to financing in the financial system. The Riksbank should therefore begin the phase-out of asset purchasing to avoid further increase of risk-taking. Amongst others, FI sees growing risks within the commercial real estate companies.
IMF to assess financial stability in Sweden
The International Monetary Fund (IMF) will conduct a review of the financial sector and the work of the authorities on financial stability, a so-called FSAP (Financial Sector Assessment Program) in 2022. FSAPs are conducted regularly for countries with systemically important financial markets. In its report, the IMF will highlight any flaws and risks in the system and propose measures to deal with them.
Continued problems with credit assessments of consumer credits
Borrowers of consumer credits have higher incomes and pay less for their loans in relation to their income compared to previous years. But we are seeing deficiencies in the credit assessment, and many borrowers are still receiving collection notices. Young borrowers are still overrepresented among those that experience early repayment problems. These are the conclusions from this year’s consumer credit survey.
Swedish Consumer Credit
One of Finansinspektionen’s (FI) assignments is to promote a high level of protection for consumers on the financial markets. FI does this in part by conducting an annual survey of new consumer credit. The survey helps enhance our understanding of consumer credit and the risks it entails for borrowers. Loans and loan service payments have a major impact on household finances. For a borrower with an average income that takes out a large consumer credit, the monthly payment for the interest and amortisation payments can correspond to the payment of a significantly larger mortgage.
TRS 2 closed for maintenance 18 November
TRS 2 will be closed for maintenance the 18 November.
Crypto-assets are a threat to the climate transition – energy-intensive mining should be banned
The most common method for producing crypto-assets requires enormous amounts of electricity and generates large CO2 emissions. Crypto-asset producers are keen to use more renewable energy, and they are increasing their presence in the Nordic region. Sweden needs the renewable energy targeted by crypto-asset producers for the climate transition of our essential services, and increased use by miners threatens our ability to meet the Paris Agreement. Energy-intensive mining of crypto-assets should therefore be prohibited. This is the conclusion of the director generals of both the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency.
Erik Thedéen talks about sustainability reporting at COP26
A global standard for sustainability reporting will make it possible for the finance sector to steer investments from harmful activities to activities that contribute to the climate transition. Finansinspektionen’s (FI) Director General Erik Thedéen will be at the UN’s climate conference (COP26) in Glasgow to talk about this work.
The TRS2 test environment closed on Monday for maintenance
On Monday, 1 November, the TRS2 test environment will be closed for maintenance.
Incident in the TRS 2 test environment resolved
The incident entailing missing or incomplete feedback in the TRS2 test environment has been resolved today the 22 October. FF- and FD-files are now generated normally.
FI increases sustainability efforts with new manager
Finansinspektionen (FI) is creating a new position to strengthen its work within sustainability. Johanna Fager Wettergren will be the new Head of Sustainable Finance.
Ongoing incident in the test environment for TRS 2
There has been an ongoing incident since 18 October in the test environment for TRS 2. Submitting entities are either not receiving all expected feedback or receiving no feedback at all (neither FF nor FD files). Troubleshooting is in progress.
Danske Bank has deficiencies in its anti-money laundering work
Danske Bank has not sufficiently assessed the risk of how the bank’s products and services in Sweden may be used for money laundering and terrorist financing. Danske Bank must therefore rectify these deficiencies no later than June 30, 2022.
Danske Bank receives injunction to take remedial action
Danske Bank has not sufficiently assessed the risk of how the bank’s products and services in Sweden may be used for money laundering and terrorist financing. Danske Bank therefore must rectify this deficiency no later than 30 June 2022.
FI withdraws the authorisation of securities company Nordic Fondkommission AB
Finansinspektionen (FI) is withdrawing the authorisation of securities company Nord Fondkommision AB (Nord) due to severe deficiencies in the company’s advisory activities and other areas. This decision means that the company must cease all regulated activities. As a result, it may no longer provide financial advice or sell financial products. The decision will be presented by FI Director General Erik Thedéen and Chief Legal Counsel Eric Leijonram at a press conference today, Wednesday, 13 October, at 10:00 AM.
Nord Fondkommission AB’s authorisation is withdrawn
Finansinspektionen (FI) is withdrawing all of Nord Fondkommission AB’s (Nord) authorisations due to severe deficiencies, in part in the company’s advisory services.
FI Supervision 24: Complaints handling in insurance firms
Finansinspektionen (FI) conducted a survey of twenty insurance firms and determined that the firms in general handle complaints in a satisfactory manner, but there is room for improvement.
Children can understand money’s value even without cash
Cash is not necessary for children to understand the value of money. This is the outcome of a study by KTH Royal Institute of Technology that was commissioned by Finansinspektionen (FI). Parents therefore should not let the decreasing use of cash stand in the way of teaching children about money, a knowledge that children need to have for a good understanding of their personal finances as adults.
FI raises the countercyclical buffer rate to 1 per cent
Finansinspektionen (FI) has decided to raise the countercyclical buffer rate to 1 per cent. The new buffer rate will be applied as of 29 September 2022. Until then, the buffer rate will remain at 0 per cent.
FI opens investigation into EQT AB
Finansinspektionen has decided to open an investigation into EQT AB for suspected breach of the Market Abuse Regulation (MAR) in conjunction with a delayed disclosure of inside information. FI’s handling of this matter is thus entering a new phase.
FI notifies the EU regarding extension of the existing risk weight floor for Swedish Mortgages
Finansinspektionen has notified the Commission and the European Systemic Risk Board (ESRB) that it intends to adopt a decision to extend the current risk weight floor for Swedish Mortgages for a period of two years, in accordance with Article 458 of the CRR.
TRS 2 closed for maintenance
On Friday, 24 September, until Sunday, 26 September, TRS 2 will be closed for maintenance.
New guidelines regarding consumer credit assessments
Many consumer credit assessments need to improve to fulfil the requirements of the Consumer Credit Act. Finansinspektionen (FI) is therefore now clarifying what information lenders should gather for a credit assessment and how this information should be used. The new general guidelines will go into effect on 1 November 2021.
FI reviews EQT’s handling of delayed disclosure
On 7 September, FI received a notification from EQT AB regarding a delayed disclosure of inside information. On 14 September, FI requested that the company submit an account of the circumstances that served as a basis for the delayed disclosure. FI will analyse the response from EQT AB in order to decide if there are grounds for further action.
FI intends to raise the countercyclical buffer rate to 1 per cent
Finansinspektionen (FI) intends to raise the countercyclical buffer rate to 1 per cent in Q3 2021.
FI wants the EU to comply with Basel III
During the autumn, the European Commission will publish a proposal for updated capital adequacy rules for banks within the EU. Finansinspektionen (FI) now urges the EU Commission to stick to the Basel III agreement.
Karin Lundberg: Finansinspektionen’s view on capital and distributions
Karin Lundberg, Executive Director of Banking, talked about Finansinspektionen’s view on capital and distributions in a speech at the UBS Annual Nordic Financial Services Conference.
New procedures for submission of Key Investor Information Document for foreign UCITS
Pursuant to Article 93 (7) and (8) of Directive 2009/65/EC, a foreign UCITS established in another Member State authorised for marketing in Sweden must submit to Finansinspektionen annual updates of KIID(s) or updated KIID(s) of share class(es) authorised for distribution in Sweden.
LEI validation in the TRS 2 system is functional again
FI has received and input all GLEIF LEI data files that were missing in the TRS 2 system due to an incident that occurred at ESMA during the period 2021-08-10–2021-08-27.
The TRS 2 system has an ongoing IT incident
ESMA has had an ongoing IT incident since 10 August 2021 that has prevented it from delivering to national supervisory authorities LEI reference data files for transaction validation.
Capital requirements of Swedish banks as of Q2 2021
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 2021.
Proposal to repeal regulations regarding MREL reporting
FI proposes that the regulations (FFFS 2019:1) regarding periodic reporting of data on the minimum requirement for own funds and eligible liabilities (MREL) be repealed.
Mortgages must be amortised again
The rules on amortisation go into effect as normal again after 31 August. The temporary exemption that Finansinspektionen (FI) introduced due to the exceptional uncertainty in the economy during the spring of 2020 is now ending. This means that households with high loan-to-value and debt-to-income ratios must amortise their mortgages.
FI will not extend its recommendation regarding dividends
Uncertainty is decreasing, and the economy is continuing to recover. Therefore, the recommendation regarding restrictions on dividends will not be extended. The recommendation ends on 30 September 2021.
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).
Updated Pillar 2 method for assessing flowback risk associated with securitisation
FI has updated its method for assessing flowback risks associated with securitisation for individual banks. The aim is to decide, where applicable, on an additional own funds requirement under Pillar 2 for flowback risks associated with securitisation. This enables us to safeguard that a bank is sufficiently covering the flowback risks to which it is exposed.
FI investigates IT incident at Klarna
FI will investigate whether Klarna violated its duty of confidentiality in conjunction with an IT incident in May when the bank’s customers were able for a limited time to access information about one another. This matter will be added to the investigation that FI has already opened into Klarna’s work with information and cyber security.
Overall assessment of macroprudential measures
Since 2010, FI has implemented a number of macroprudential measures aimed at increasing the resilience in the financial system and subduing the risks associated with high and rising household debt. These measures include tightening the capital requirements on banks and introducing a mortgage cap and two amortisation requirements. In this report, we present an overall assessment of these measures, with a focus on the measures that, via lenders, place restrictions on households’ mortgage borrowing.
Macroprudential measures subdue household loans
The mortgage cap and amortisation requirements have had intended effect and subdued household debt. They are slowing a scenario where new mortgagors borrow more, taking larger loans in relation to the value of the home or their income. These are the conclusions of Finansinspektionen’s (FI) evaluation of the macroprudential measures implemented in Sweden.
FI Analys No 34: Temporary amortisation exemption led to new mortgagors borrowing
The temporary amortisation exemption resulted in new mortgagors borrowing almost 4 per cent more and buying homes that were approximately 1 per cent more expensive, concludes a new FI Analysis.
Maiden Life receives warning and administrative fine
Finansinspektionen is issuing Maiden Life Försäkrings AB a warning. The company must also pay an administrative fine of SEK 5.5 million.
Maiden Life receives warning and administrative fine
Finansinspektionen (FI) is issuing Maiden Life Försäkrings AB a warning. The company must also pay an administrative fine of SEK 5.5 million.
FI reciprocates Norwegian risk weight floor
Finansinspektionen has passed a decision to reciprocate the Norwegian Ministry of Finance’s decision to implement an average risk weight floor 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.
FI Supervision Report 23: Observations from anti-money laundering reporting
FI has analysed and compared information that firms under FI’s money laundering supervision reported to the authority during the years 2018-2021. The analysis indicates areas where the companies need to develop their processes to better handle the risk of being misused for money laundering or terrorist financing.
Erik Thedéen: Crypto-assets – risks and opportunities
“The technology behind crypto-assets has the potential to create value for society, but crypto-assets like Bitcoin also pose significant risks,” said Erik Thedéen, when he spoke about the development of crypto-assets today at a seminar arranged by the Swedish Investor Relations Association.
FI Analysis No. 33: Household debt and resilience
The ability to borrow is beneficial to households in many ways. At the same time, debt can make their consumption more sensitive to unexpected changes in interest rates, income, and house prices. This, in turn, can affect how the economy evolves in a crisis. But measures that lead to lower debt don’t necessarily increase the resilience of all households. To assess the effects of borrower-based measures, it is necessary to also consider households’ balance sheets, in particular their liquid assets.
TRS 2 closed for maintenance
On Wednesday, 16 June, TRS 2 will be closed for maintenance.
Stability in the Financial System (2021:1)
The economy is continuing to recover. Support measures have been necessary to speed up the recovery, but they need to be gradually phased out as the economy strengthens. This applies primarily to measures that are associated with the build-up of stability risks.
Support measures can build up stability risks
The support measures have been important for offsetting the economic impact of the crisis and speeding up the recovery. However, they can also contribute to greater stability risks in the long run, concludes Finansinspektionen (FI) in this year’s first report on the stability in the financial system, which is being published today.
Liquidity tools in UCITS and special funds
Finansinspektionen concludes in a new report that fund managers need access to additional tools to manage liquidity risks in Swedish UCITS and special funds. We consider there to be a certain type of swing pricing that could be used already today. The report outlines a suggestion for how to regulate this and other liquidity management tools in legislation and regulations. FI takes the position that Swedish UCITS only need to be open for redemptions once a week. We suggest that the funds instead only need to be open for redemptions twice a month.
FI leaves the countercyclical buffer rate unchanged
Finansinspektionen (FI) leaves the countercyclical buffer rate unchanged. The buffer rate of 0 per cent, which was applied starting on 16 March 2020, shall thus continue to apply. The countercyclical buffer guide is set at 1.6 per cent.
FI’s approach to assess suitable level of own funds in Swedish banks (Pillar 2 guidance)
FI has decided on a general approach to assess the size of a bank’s so-called Pillar 2 guidance. The approach is based on a two-step assessment that starts with a sensitivity-based stress test.
Capital requirements of Swedish banks as of Q1 2021
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 2021.
Memorandum Legislative Measures due to the EU’s Green Taxonomy Regulation
Finansinspektionen (FI) supports in general the proposals in the memorandum. However, FI has some feedback points about the proposals.
Low income the greatest risk factor for loans leading to debt with the Swedish Enforcement Authority
One fifth of all debts with the Swedish Enforcement Authority come from loans. And people with low incomes run the greatest risk of suffering repayment problems. Repayment problems often start with life events such as unemployment or illness. This is shown by a new analysis from Finansinspektionen (FI), the Swedish Consumer Agency and the Swedish Enforcement Authority.
FI Analysis 32: Loans, Repayment Problems and Debts with the Swedish Enforcement Authority
Loans and other debts are of significance to repayment problems. This analysis focuses on the significance of loans to individual’s repayment problems.
TRS2 Test environment will be closed 19 May
On Wednesday, 19 May, the test environment of the TRS 2 system will be closed for maintenance.
FI Analysis 31: Funding structure of the major banks – historical trends
This FI analysis describes the funding structure of the major Swedish banks in the period 2002–2019. Consequently, the period analysed does not cover the ongoing pandemic and its impact on the financial markets through central banks’ and supervisory authorities’ various monetary policy and supervision measures.
Appointment of FI’s Director General has been extended
The Government has decided to extend Erik Thedéen’s employment as director general and head of Finansinspektionen by three years.
FI introduces new reporting system
FI has decided to replace several of our existing reporting systems with a new system with the aim of better meeting current and future legal requirements and enhancing user-friendliness for the companies that report via the systems. The new reporting system, FIDAC, will be used for both periodic and event-driven reporting.
Erik Thedéen: The private sector can and should take the chance to speed up the transition
Climate change is an existential threat to mankind. In order to meet this threat, we need extensive policy decisions. In particular, carbon prices must go up. The private sector and the financial market can contribute, said Finansinspektionen’s Director General Erik Thedéen at the Hållbara Finanser 2021 conference (Sustainable Finances). By already preparing now to be able to quickly report in accordance with future international standards on corporate sustainability reporting and also voluntarily using and reporting internal carbon pricing.
New borrowers are taking larger mortgages
New borrowers are continuing to take larger mortgages in relation to their income and the value of their home, according to this year’s Swedish Mortgage Market, which is being presented today by Finansinspektionen (FI). FI also announces in the report that the temporary exemption from the amortisation requirement will end on 31 August.
The Swedish Mortgage Market (2021)
New borrowers continue to take larger mortgages in relation to their income and the value of their home. At the same time, they have good margins for servicing their loans under weaker economic conditions.
FI’s approach to setting the countercyclical capital buffer
In a new memorandum, Finansinspektionen describes the general principles for the application of the countercyclical capital buffer. FI is also leaving the countercyclical capital buffer unchanged at 0 per cent.
New memorandum and level of the countercyclical buffer rate
Today Finansinspektionen (FI) publishes a new memorandum, describing its approach for setting the countercyclical buffer rate. FI also leave the countercyclical buffer rate unchanged. The buffer rate of 0 per cent, which was applied starting on 16 March 2020, shall thus continue to apply. The countercyclical buffer guide is set at 2.1 per cent.
FI’s approach to setting the countercyclical capital buffer
In a new memorandum, Finansinspektionen describes the general principles for the application of the countercyclical capital buffer.
FI Analysis 30: Internal price on carbon – what and why?
To reach the climate goals in the Paris Agreement, carbon emissions must go down. The most efficient way to achieve this is by raising the cost of emissions compared to today.
Sustainability Report 2021 – the climate in focus
Finansinspektionen has an assignment to promote the financial system’s contribution to sustainable development. The sustainability report outlines the current sustainability issues that are related to the financial sector and lists examples of what FI is working on in this area.
Enhanced review of sustainability in banks
FI will include a sustainability perspective when reviewing business models and credit risks of banks, according to a report published by FI today.
Temporary lowering of notification threshold expires
The European Securities and Markets Authority (ESMA) has decided not to renew its decision to temporarily lower the notification threshold for when net short positions are to be notified to the relevant national competent authority.
FI extends the risk weight floor for Swedish mortgage exposures
FI has decided to extend the risk weight floor by one year, from 30 December 2020 to 30 December 2021.
Cyber threats and financial stability – FI’s roll and assignments
In recent years, a number of legislative proposals and other initiatives have been presented to strengthen the financial sector’s resilience to cyberattacks. Given this background, Finansinspektionen has prepared a memorandum to describe FI’s role in terms of contributing to strong cyber security and its work to prevent cyber threats to the Swedish financial sector.
FI clarifies obligations for third-party payment service providers
Finansinspektionen would like to clarify the obligations of third-party payment service providers when gathering information about bank customers’ payment accounts via digital interfaces. FI has also contacted the banks and reminded them about their obligations as an account servicing payment service provider (ASPSP).
IOSCO takes important step towards global sustainability disclosure
An important step has now been taken towards a global standard for sustainability reporting. The Board of Directors of the International Organization of Securities Commissions (IOSCO) voted during its meeting yesterday for IOSCO to actively work to achieve a unified and comparable global standard for sustainability disclosure. IOSCO’s work in this area is being carried out within the work group led by Finansinspektionen’s Director General Erik Thedéen.
Capital requirements of Swedish banks as of Q4 2020
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 2020.
Young adults and low-income earners face greatest risk of debt trap
Young borrowers and borrowers with low income run a higher risk of experiencing payment problems when they take non-mortgage loans, even if they only borrow small amounts. At the same time, the risk that consumers will get trapped in debt decreases if credit providers conduct thorough credit assessments. These are the conclusions of a new analysis from Finansinspektionen that is presented in conjunction with this year’s consumer protection report.
FI Analysis 29: Why do some borrowers experience payment problems?
Young borrowers and borrowers with low income have a higher risk of experiencing payment problems when taking non-mortgage loans. The risk decreases if the credit providers conduct more thorough credit assessments. These are the conclusions drawn in a new report from Finansinspektionen (FI).
Consumer Protection Report 2021
Paying by invoice or with other credit-based offers is becoming an integral part of shopping online. Young adults are unique with their small margins and large number of payment reminders and collection notices. Unaffordable loans are a prioritised consumer risk in this year’s report.
FI warns consumers of risks connected to cryptoasset products
Think carefully before buying a financial product containing cryptoassets. The risks are significant and the protections for you as a consumer are weak, FI warns today.
FI Supervision Report 21: Financial instruments with crypto-assets as underlying asset
FI conducted a thematic review of the market for financial instruments with crypto-assets as an underlying asset. FI is of the view that there is a lack of adequate consumer protection regulation for crypto-assets. Valuing them is also challenging and the instruments are volatile. This makes the products unsuitable for most, if not all, retail consumers.
2021:1 Bond-financed lending
In this document, FI states its position on what is viewed as receiving repayable funds in accordance with Chapter 1, section 4 of the Banking and Financing Business Act.
FI proposes approach to assess Pillar 2 guidance for Swedish banks
FI is presenting a proposal for a general approach to assess the size of the Pillar 2 guidance for Swedish banks. The proposal is based on a two-step approach that starts with a sensitivity-based stress test. Comments on the proposal may be submitted to FI no later than 12 March.
FI’s prioritised areas for 2021
Are the banks conducting thorough credit assessments when customers apply for consumer credit? Are smaller banks and payment service firms taking sufficient measures to prevent money laundering? What risks will the coronavirus pandemic pose in the future? These are three areas that Finansinspektionen (FI) will look more closely at in 2021.
Finansinspektionen’s prioritised areas for 2021
Consumer protection, money laundering and risks that the coronavirus pandemic may pose in the future are three areas that FI will look more closely at in 2021.
Don’t be fooled again
Have you been the victim of investment fraud? Then there is a risk that you will be targeted again. You might be contacted with new investment offers, or you might receive a fake offer to help recover previous losses. Sometimes these offers come right after the first fraud, but other times they come several years later.
Clarification of Finansinspektionen's sanction decision against Nasdaq Clearing AB
By its decision of 26 January 2021, Finansinspektionen (FI) issued Nasdaq Clearing AB a warning for serious deficiencies in its operations. According to the decision, Nasdaq Clearing must also pay an administrative fine of SEK 300 million.
Nasdaq Clearing receives warning and administrative fine of MSEK 300
Finansinspektionen (FI) is issuing Nasdaq Clearing AB a warning for serious deficiencies in its operations, in part in conjunction with a member of the firm’s commodities market being declared in default in 2018. Nasdaq Clearing must also pay an administrative fine of SEK 300 million.
Nasdaq Clearing Aktiebolag receives a warning and an administrative fine
Nasdaq Clearing Aktiebolag is receiving a warning and must pay an administrative fine of SEK 300 million.
FI Analysis 28: Liquid assets of Swedish households
Aggregate statistics indicate that Swedish households are holding significant assets in the form of cash, bank savings, fund shares and securities. The overall value corresponds today to an average of SEK 1 million per household. However, because these economic buffers are unevenly distributed between households, the average is a poor measure for assessing the risk of a significant drop in consumption following an economic shock.
FI Analysis 27: Non-financial firms and financial stability: a description of vulnerabilities
This FI Analysis describes how vulnerabilities from lending to non-financial firms arise and why FI needs to follow them to fulfil its assignment to safeguard financial stability.
TRS 2 closed for maintenance
On Tuesday, 26 January, TRS 2 will be closed for maintenance.
Update of FI’s Company Register
Due to the United Kingdom’s withdrawal from the European Union, financial actors’ right to conduct cross-border operations in or from the United Kingdom that are based on European Union law was repealed on 1 January 2021.
2020
New procedures to enhance transparency
As of 1 January 2021, FI will implement new procedures for how it announces opened and closed supervision investigations.
Households’ finances and financial literacy 2020
Single-adult households with children continue to have a more difficult financial situation than other households. FI has measured households’ financial literacy and found that it has improved in almost all areas compared to previous surveys.
Financial firms must be restrictive with dividends until September 2021
In light of the economic uncertainty caused by the ongoing coronavirus pandemic, FI expects banks, including credit institutions and other financial firms such as insurance companies, to be restrictive with dividends and share buybacks until 30 September 2021. During this period, total dividends from and buybacks by the banks should not exceed 25 per cent of their aggregate net earnings for the two financial years 2019–2020.
Maintenance of TRS2 system planned for beginning of January 2021 in conjunction with Brexit
Due to Brexit, ESMA will have a maintenance window from 31 December 2020 through (preliminarily) 7 January 2021.
US central bank joins NGFS
FI welcomes the Federal Reserve to the Network for Greening the Financial System (NGFS), which celebrates its third anniversary today.
Reminder: what a hard Brexit will entail
What will happen in the event that the transition period ends without an agreement between the EU and the UK.
Macro-based stress test of Swedish banks: results and methodology, autumn 2020
Finansinspektionen (FI) presents in this memorandum a stress test of the Swedish banks that we conducted in the autumn of 2020. The results indicate that the major banks have significant resilience to the credit losses that could arise and also a capacity to maintain the supply of credit.
Stability in the Financial System (2020:2)
The pandemic has triggered a deep economic recession in many countries, even if a slight recovery has begun. Extensive support measures have mitigated the economic impact and reduced the uncertainty on the financial markets. During the autumn, infection rates have once again begun to increase and several countries have introduced new restrictions, which will dampen the economic recovery, even though it is uncertain to which extent.
Dampened recovery can weaken financial stability
An increase in the spread of the coronavirus will dampen the recovery in European economies and, in the long run, this could impact financial stability, writes Finansinspektionen (FI) in this year’s second stability report, which will be published today.
Capital requirements of Swedish banks as of Q3 2020
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 2020.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) decided on 24 November not to change the countercyclical buffer rate. The buffer rate of 0 per cent, which was applied starting on 16 March 2020, shall thus continue to apply. The countercyclical buffer guide is set at 1.7 per cent.
FI Analysis 26: Macro-based credit loss model for major Swedish banks
Large credit losses can result in otherwise profitable banks reporting a loss. This FI Analysis describes a methodology for estimating how large credit losses can be in a stressed macroeconomic scenario.
FI has decided on a change in the application of banks’ capital requirements
FI has decided to change the application of capital requirements for Swedish banks in order to adapt to the EU’s so-called banking package.
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.
FI Analysis 25: Interest rate deductions and households’ loans
The tax rebate for interest expenses – the interest deduction – means that households borrow more, and can and want to pay more for homes. This means that the households experience an increase in both their liabilities and assets, which in turn could have an impact on the stability of the financial system. In this FI Analysis, we calculate the impact of a change to the interest deduction. The reason for this analysis is the direct link between interest deductions and households’ loans.
FI Analysis 24: Stress test of bank lending to commercial real estate firms
Commercial real estate firms are sensitive to changes in interest rate expenses and income. Following a shock, vulnerable commercial real estate firms could lead to credit losses for the banks.
Bank dividends not appropriate until the situation has stabilised
As the crisis unrolled this past spring in full force, it required fast and extraordinary measures. For example, FI lowered the countercyclical buffer requirement for the banks and encouraged them at the same time to postpone their dividend payments until the situation had become clearer. During the autumn, FI repeated its message to the banks to not make any dividend payments in 2020.
FI Supervision 20: Distribution of Life Insurance
The majority of the distribution on the life insurance market occurs through external distribution channels. It is therefore important for insurance firms to fulfil their responsibility to choose suitable distribution channels for the target market and follow up that the insurance products are distributed to the proper target group.
Henrik Braconier's speech at SNS/SHOF Finance Panel: Corporate Finance in a Low Interest Rate Environment
Henrik Braconier, Chief Economist at FI, spoke on risks related to low interest rates at SNS/SHOF’s Finance Panel: Corporate Finance in a Low Interest Rate Environment.
FI Analysis 23: Can the bond market dampen the credit cycle?
The access of non-financial firms to credit is central for financial stability, particularly during financial crises. In recent years, the market for corporate bonds has grown steadily and currently plays an important role in firms’ financing. This analysis shows that it has not been easier to issue corporate bonds in Swedish krona during financial crises than to take a bank loan. This pattern deviates from previous research on the USA and the euro zone.
AK Nordic receives a remark and an administrative fine
Finansinspektionen (FI) is issuing credit market company AK Nordic AB a remark. The company must also pay an administrative fine of SEK 20 million.
AK Nordic AB receives a remark and an administrative fine
Finansinspektionen is issuing AK Nordic AB a remark. AK Nordic AB shall also pay an administrative fine of SEK 20,000,000.
TRS 2 closed for maintenance
On Friday, 16 October, from 1:00 PM to 4:00 PM, TRS 2 will be closed for maintenance.
The new Short Selling Register is launched today
Today, FI launches a new Short Selling Register for significant net short positions.
Erik Thedéen's speech at Driving Global Standards on Sustainable Finance
Erik Thedéen, Finansinspektionen's Director General and Chair of IOSCO's Task Force on Sustainable Finance made a speech at the conference Driving Global Standards on Sustainable Finance.
Swedish Consumer Credit
Even though consumer credit only constitutes a small portion of households’ total credit, the interest rate and amortisation payments for these credits amount to more than half of the households’ total debt service payments. The analysis also shows that individual consumers are having difficulty paying for their consumer credit. Overall, this means that the consumer credit market could impact many households, which makes it important for consumer protection on the financial markets.
FI Analysis 22: Fewer high-cost short-term credits after new rules
After the provisions regarding high-cost short-term credits were changed in 2018 – in part by introducing an interest rate ceiling and cost ceiling – these types of loans decreased sharply. It is probable that the reform has led to a decrease in the supply of high-cost short-term credits. It is also evident that several companies have stopped offering such loans.
Credit checks must be improved
Large credits are growing, but the smallest credits are growing faster. More borrowers are having difficulty making their payments soon after the credits are granted, and these payment difficulties are more prevalent among younger borrowers than older borrowers. These are some of the conclusions from Finansinspektionen's report this year on consumer credit. These conclusions indicate that lenders’ credit checks are not working as they should, and FI is therefore now reviewing the guidelines.
FI proposes amended rules and a change in the application of banks’ capital requirements
FI is proposing regulatory amendments and a change in the application of capital requirements for Swedish banks in order to adapt to the EU’s so-called banking package.
New reporting system for short selling is launched today
Today, FI launches a new reporting system for the reporting of net short positions: the Short Selling Online Reporting tool.
New reporting system for short selling to be launched this week
This week, FI will launch a new reporting system for the reporting of net short positions: the Short Selling Online Reporting tool.
FI confirms investigation into Swedbank
Swedbank has written in a press release that FI is investigating potential breaches of the Market Abuse Act. Given that the company has chosen to disclose information about the investigation, FI confirms that the information is correct. FI has opened an investigation.
FI notifies the EU regarding extension of the existing risk weight floor for Swedish Mortgages
Finansinspektionen has notified the EU Parliament, the Council, the Commission, the European Systemic Risk Board (ESRB) and the European Banking Authority (EBA) that it intends to adopt a decision to extend the current risk weight floor for Swedish Mortgages for a period of one year, in accordance with Article 458 of the CRR.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) decided on 9 September not to change the countercyclical buffer rate. The buffer rate of 0 per cent, which was applied starting on 16 March 2020, shall thus continue to apply. The countercyclical buffer guide is set at 1.3 per cent.
Reminder: New log-in method for periodic reporting replaces reporting card
Finansinspektionen would like to remind rapporteurs that FI has introduced a new log-in method for periodic reporting filed via an application on the computer that previously required a card and card reader. The new method requires users to log in using Bank ID.
Continued grounds for suspension of dividend payments for the rest of the year
Despite positive signals, there is still considerable uncertainty about how the coronavirus pandemic will develop in the next few months in both Sweden and the rest of the world. To ensure the banks’ resilience in a situation that continues to be uncertain, the banks should suspend the payment of dividends to shareholders in 2020. This was the message from Finansinspektionen’s Director General Erik Thedéen at Fastighetsdagen today.
Capital requirements of Swedish banks as of Q2 2020
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 2020.
Erik Thedéen: How can consumer welfare be improved in financial markets?
FI's Director General Erik Thedéen took part in a panel discussion during the conference "Consumer Behavior in Financial Markets", arranged by the Swedish House of Finance at the Stockholm School of Economics today.
TRS 2 closed for maintenance
On Friday, 28 August, TRS 2 will be closed for maintenance.
New log-in method for periodic reporting replaces reporting card
Finansinspektionen has introduced a new log-in method for periodic reporting filed via an application on the computer that previously required a card and card reader. The new method requires users to log in using Bank ID.
ESRB recommendation on distribution
The COVID-19 pandemic has incurred large human and economic costs and also affected the financial sector. Maintaining own funds in financial institutions is important both for ensuring the resilience of the financial system and supporting banks' lending through this crisis.
FI Analysis 21: New liquidity indicators for the fixed-income market
The Swedish fixed-income market – which consists of the bond market, the money market and interest rate derivatives – is important for the government, municipalities, banks and firms to be able to finance their operations and manage risks. It is therefore of central importance to understand how these markets function and, more specifically, how liquid they are. This FI Analysis presents a new method for measuring market liquidity that focuses on government bonds and covered bonds.
New reporting system for short selling
In the autumn of 2020, Finansinspektionen will introduce a new reporting system for the reporting of net short positions: the Short Selling Online Reporting tool.
UCITS holdings now published
The first publication occasion covers UCITS holdings for Q1 2020 and older figures for the period Q4 2018 onward. The data will from now on be published with a two-month delay. This means that the holdings for Q2 2020 will be published on 1 September.
SEB receives an administrative fine for deficiencies in its work to combat money laundering in the Baltics
SEB has not sufficiently identified the risk of money laundering in its Baltic operations and has had deficiencies in its governance and control of the Baltic subsidiary banks’ anti-money laundering measures. SEB is therefore being issued a remark and an administrative fine of SEK 1 billion.
SEB receives remark and administrative fine of SEK 1 billion
SEB receives a remark and must pay an administrative fine of SEK 1 billion for deficiencies in its work to prevent money laundering risks.
FI will hold press conference about SEB
Finansinspektionen (FI) will hold a press conference on Thursday, 25 June, following the Board of Directors’ decision regarding the investigation into SEB AB’s governance and control of measures to combat money laundering in the bank’s subsidiaries in the Baltic countries.
JAK Medlemsbank receives a remark and an administrative fine
JAK Medlemsbank (JAK) 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 1.6 million.
JAK Medlemsbank receives a remark and an administrative fine
Finansinspektionen is issuing JAK Medlemsbank (516401-9969) a remark. JAK Medlemsbank must also pay an administrative fine of SEK 1.6 million.
New log-in method for periodic reporting replaces reporting card
On 18 August 2020, FI will introduce a new log-in method for periodic reporting filed via an application on the computer and that previously required a card and card reader. The new method requires users to log in using Bank ID.
FI Supervision 18: Continuity management at banks
Many banks are working actively with continuity management and have implemented key measures to reduce the risk of serious disruptions. At the same time, FI sees a need for the banks to further strengthen their continuity management. FI expects the banks to continue to focus on enhancing the resilience of their critical functions. This supervision report describes the areas where FI would like to see improvements.
Measures stabilised the financial situation
Governments, central banks, and authorities around the world have taken powerful measures to mitigate the economic impact of the coronavirus pandemic. These measures also helped dampen uncertainty on the financial markets. By utilising available buffers and continuing to lend to firms and households, the financial sector can dampen the impact of the crisis. It is also important to remember that the economic crisis is not over, and uncertainty is therefore high, notes Finansinspektionen (FI) in its first stability report of the year.
Stability in the Financial System (2020:1)
The coronavirus pandemic has resulted in an exceptional stress for the real economy. Governments, central banks and supervisory authorities have implemented significant measures to dampen the crisis. This has helped to reduce the uncertainty on the financial markets. But we are in still in the middle of the crisis, and there is considerable uncertainty going forward.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) decided on 3 June not to change the countercyclical buffer rate. The buffer rate of 0 per cent, which was applied starting on 16 March 2020, shall thus continue to apply. The countercyclical buffer guide is set at 0.48 per cent.
FI withdraws the authorisation of investment firm Exceed
Finansinspektion (FI) immediately withdraws the authorisation for Exceed Capital Sverige AB. Under FI’s decision, the company loses all its authorisations and may no longer conduct regulated business. The decision will be presented by FI Director General Erik Thedéen and Chief Legal Counsel Eric Leijonram at a press conference today, Tuesday, 2 June, at 2:00 PM.
Withdrawn authorisation for Exceed Capital Sverige AB
Finansinspektionen withdraws all Exceed Capital Sverige AB’s (Exceed) authorisations to conduct securities business and its authorisation for ancillary services, authorisation to conduct insurance distribution, and authorisation to be registered as a manager of fund units.
Financial reporting supervision
2020-05-28 | Sanctions
Finansinspektionen intervens when issuers subject to Chapter 16, section 1, first paragraph of the Securities Market Act (2007:528) do not prepare their financial statements in accordance with current regulations. We issue a caution and an order of correction. We can also decide on an administrative fine and can combine the order with a fine.
Global sustainability network NGFS publishes status report and guide for supervisors
The global sustainability network NGFS (Network for Greening the Financial System) is publishing today a report on how banks around the world consider climate-related risks in their lending. The report shows that this is occurring more frequently, but it is at the same time difficult to see which loans constitute a lower risk. This is because, for example, there is no international classification and a shared perception of which assets are “green” and “brown”.
Capital requirements of Swedish banks as of Q1 2020
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 2020.
JM receives a caution and an order to follow financial reporting rules
JM has been in violation of the international financial reporting standard IFRS 10 in its consolidated financial statements for 2017 by not including – consolidating – tenant-owners associations during the so-called production phase. FI is issuing JM a caution and ordering the company to take corrective action in future financial statements. The correction shall be implemented no later than in the company’s half-yearly report for 2020.
New collection of data in EIOPA’s ongoing impact assessment of the Solvency II Review
The European Insurance and Occupational Pensions Authority (EIOPA) will collect new data for its ongoing impact assessment to assess the effects of the coronavirus pandemic.
FI resumes work on supervision investigations
FI decided on 1 April given the acute stage of the coronavirus pandemic to extend the freeze on new supervision investigations until 3 May. This decision will not be extended again, which means that the freeze on ongoing supervision meetings, investigations and information gathering will be lifted starting on 4 May.
EU authority publishes consumer guides on insurance
Due to the coronavirus pandemic, the European Insurance and Occupational Pensions Authority (EIOPA) has published a consumer guide with tips that target insurance customers.
EIOPA on principles for mitigating the effects of the coronavirus pandemic in the occupational pensions sector
The European Insurance and Occupational Pensions Authority (EIOPA) has published a statement on principles that national competent authorities should consider to mitigate the impact of the coronavirus pandemic on the occupational pensions sector.
FI issues Skandia Liv a warning
Skandia Liv has not calculated its capital need and commitments to its customers realistically or correctly for several years. This has entailed that the company’s customer protection and the company’s solvency have not been fairly assessed. Skandia Liv is therefore receiving a warning and an administrative fine of SEK 35 million.
Skandia Liv receives a warning and an administrative fine
Skandia, ömsesidigt (Skandia Liv ) receives a warning and must pay an administrative fine of SEK 35 million.
The Swedish Bankers’ Association transfers administration of STIBOR to Swedish Financial Benchmark Facility
The Swedish Bankers’ Association has announced that the association is transferring the administration of the Swedish benchmark STIBOR to Swedish Financial Benchmark Facility (SFBF), whereupon the task of adapting STIBOR to the requirements set out in the EU Benchmarks Regulation falls to SFBF. Finansinspektionen will assess the application for authorisation of SFBF as administrator of STIBOR when it is submitted.
ESMA’s guidelines on alternative performance measures – questions and answers on COVID-19
Due to the coronavirus pandemic, the European Securities and Markets Authority (ESMA) has published new Q&As on its guidelines for alternative performance measures (APMs). ESMA aims with this document to continue to promote common application of the guidelines in the EU countries.
Minutes of the Financial Stability Council Meeting on 16 April
The minutes from the Financial Stability Council’s extraordinary meeting on 16 April have now been published on the Council’s website.
Financial Stability Council convenes an extraordinary meeting on 16 April
On Thursday, 16 April, the Minister for Financial Markets and Housing Per Bolund, Finansinspektionen, the Riksbank, and the Swedish National Debt Office will convene an extraordinary meeting of the Financial Stability Council.
FI’s view on the application of the EBA’s new guidelines on moratoria
The European Banking Authority (EBA) published guidelines on 2 April on the criteria that must be fulfilled in order for measures taken to be viewed as general moratoria. FI considers exemptions from amortisation requirements for mortgages and payment reliefs for small and mid-sized firms in accordance with the Swedish National Debt Office’s loan guarantees to be measures that can be viewed as general moratoria under the guidelines.
Banks may now grant amortisation exemption
FI’s Board of Directors has decided that the proposal communicated on 2 April will go into effect as of today. This means that banks will now be able to grant both new and existing mortgagors exemption from the requirement on amortisation. The exemption gives mortgagors greater financial manoeuvrability in these uncertain times during the spread of COVID-19.
ESMA statement on publication of periodic reports for investment funds
The European Securities and Markets Authority (ESMA) has published a statement on the coronavirus pandemic’s impact on the possibilities for managers of different types of funds to fulfil the requirements on when publication of periodic reports is to occur according to their respective regulations.
Proposed general guidelines for exemption from amortisation requirements on special grounds
The proposal provides mortgage undertakings with the possibility of granting all new and existing mortgagors a temporary exemption from amortisation requirements. The exemption possibility applies during a severe downturn in the Swedish economy. The current situation due to the spread of the corona virus is a clear example of when the exemption may be granted to all mortgagors amortising in accordance with the amortisation regulations.
Banks may grant all mortgagors amortisation exemption
Banks will have the possibility of offering all new and existing mortgagors an exemption from the amortisation requirements due to the spread of the coronavirus and its effects on the Swedish economy. The exemption will be in force until the end of June 2021. This enables Finansinspektionen to provide all mortgagors with greater manoeuvrability in these uncertain times.
The Swedish Mortgage Market (2020)
The percentage of new mortgagors with a high level of debt in relation to either their income or the value of the home continues to be high. New mortgagors in 2019 increased their average loan-to-income ratio. The average loan-to-value ratio also increased in 2019 among new mortgagors, thus breaking the trend of falling loan-to-value ratios since 2013.
Reporting on money laundering postponed
Due to the current situation with the ongoing spread of the coronavirus, Finansinspektionen has postponed the deadline for the annual reporting on money laundering and financing of terrorism. The deadline has been pushed forward from 31 March 2020 to 30 April 2020.
ESMA statement on extended deadlines for publishing financial statements
The European Securities and Markets Authority (ESMA) has published a statement on the coronavirus pandemic’s impact on the possibilities of listed companies to fulfil the requirements on when publication of financial statements is to occur according to the Transparency Directive. The Directive has been implemented into Swedish law through the Securities Market Act.
FI expects banks and credit market companies to stop dividend payments
The spread of the coronavirus has created immediate challenges for society and caused economic disruptions throughout Sweden and the global economy. The forecasts for the Swedish economy are rapidly deteriorating. Therefore, it is important the we safeguard a stable supply of credit to households and firms and maintain good resilience in the system. Banks and credit market companies play a crucial role in this respect.
FI delays decision on SEB until June
FI is delaying the decision that will conclude the ongoing sanction assessment in the investigation into the governance and control of anti-money laundering measures at Skandinaviska Enskilda Banken AB (SEB). FI is now planning to pass its decision in June.
EBA’s statement on payment delays linked to COVID-19
The spread of the coronavirus has introduced considerable challenges for society as a whole, and even the financial system. We find ourselves in an exceptional situation, and uncertainty is widespread. These extraordinary circumstances demand appropriate application of existing regulations, including rules for forbearance and assessment of a significant increase in credit risk.
Swedbank receives a warning and an administrative fine of SEK 4 billion
Swedbank AB receives a warning and must pay an administrative fine of SEK 4 billion for serious deficiencies in its work to combat money laundering.
Swedbank fined for serious deficiencies in its measures to combat money laundering
Swedbank AB has had serious deficiencies in its management of the risk of money laundering in its Baltic operations. This is the conclusion of parallel investigations into parent company Swedbank AB and its subsidiary bank Swedbank AS in Estonia that were conducted by Swedish Finansinspektionen (FI) and Estonian Finantsinspektsioon.
FI will hold a press conference related to Swedbank
Finansinspektionen (FI) will hold a press conference on Thursday, 19 March, following the decision by FI’s Board of Directors regarding the investigation into Swedbank’s measures to combat money laundering.
Loss of income due to corona-virus a cause for exemption from amortisation
Due to the spread of the coronavirus disease (COVID-19), many households and firms may be exposed to economic stress. Even if the crisis is expected to be temporary, its effects can be far-reaching. Banks and borrowers may agree to reduce or suspend amortisation payments temporarily given special grounds. FI considers the loss of income linked to COVID-19 to qualify as special grounds.
Decision by FI’s Board of Directors: the countercyclical buffer rate is lowered to zero
During an extraordinary meeting today, Monday, 16 March, FI’s Board of Directors decided to adopt a countercyclical buffer rate of 0 per cent in accordance with the proposal presented on Friday, 13 March 2020.
Measures to improve effectiveness of anti-money laundering supervision
“There are interesting ideas about placing parts of this supervision at the EU level. I believe that joint analytical resources and supervision methods in the long run could lead to more effective supervision, in part due to improved insight into cross-border payment flows”, asserted Erik Thedéen at the international conference Finance Summit 2020 in Paris.
FI on liquidity coverage ratios (LCR) for Swedish banks
Given the current circumstances, FI would like to clarify that it will temporarily allow banks to fall below the liquidity coverage ratio (LCR) for individual currencies and total currencies.
Proposed amendment to regulations due to reduction in countercyclical buffer rate
Finansinspektionen proposes that the buffer rate be lowered by 2.5 percentage points and set at 0 per cent.
FI lowers the countercyclical capital buffer to zero
The spread of the coronavirus disease is sending serious economic shocks throughout the world and in Sweden. There is currently widespread uncertainty about the future course of events and how far-reaching the economic impact will be. The economic disruptions and the greater uncertainty are also affecting the financial system. Finansinspektionen (FI) will therefore lower the countercyclical capital buffer requirement for banks from 2.5 per cent to 0 per cent. This corresponds to a reduction of around SEK 45 billion. The buffer is being lowered pre-emptively to ensure a well-functioning supply of credit, which helps firms and households maintain production, consumption and investments.
FI comments on COVID-19 and the banks
The spread of the coronavirus disease (COVID-19) is having a financial impact on firms and households around the world. There is considerable uncertainty about how much the disease will impact the global economy. This economic uncertainty also affects the financial system.
Erik Thedéen: FinTech and cyber threats – what impact do they have on financial stability?
The rate at which household debt is increasing has slowed the past three years. The two amortisation requirements that FI introduced contributed to this change. But the low interest rates entail risks. The debt of commercial real estate companies has been increasing sharply, and the banks have large exposures to the sector. FI decided today to raise the capital requirements for bank loans for commercial real estate. Erik Thedéen also noted that cyber threats are a challenge facing society as a whole, and cooperation is needed on a broad front.
Capital requirements of Swedish banks as of Q4 2019
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 2019.
Consumer Protection Report 2020
Finansinspektionen (FI) will prioritise two consumer protection risks for further work in 2020: unaffordable lending and unsuitable advice and distribution of financial products to consumers who were not part of the product’s original intended target market. FI will also assess the adequacy of claims handling for home insurance.
Extra Board Meeting on 19 March at 9:00 AM
The agenda for this meeting includes the investigation into Swedbank AB’s governance and control of anti-money laundering measures in the bank’s subsidiaries in the Baltic countries.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) decided on 29 January not to change the countercyclical buffer rate. The buffer rate of 2.5 per cent, which has applied since 19 September 2019, shall thus continue to apply. The countercyclical buffer guide is set at 0.18 per cent.
Increased capital requirements on bank loans for commercial real estate
Finansinspektionen (FI) considers there to be elevated risks in the banks’ lending for commercial real estate. The banks should hold more capital for these exposures, which is why FI is raising the capital requirements.
Finansinspektionen is changing SFTP connection for TRS 2
The IP addresses for the production and test environment will change for TRSII SFTP. This change will go into effect on 24 February.
Increased transparency on carbon pricing can strengthen the financial system
FI will explore the possibility of advocating both nationally and internationally increased disclosure of firms’ internal carbon pricing.
New log-in for reporting stock exchange information and major shareholding notifications
On 17 February 2020, FI is introducing a new portal for reporting stock exchange information (previously called “financial reports”) and major shareholding notifications. The new log-in requires BankID and will completely replace the old method of logging in. However, the reporting procedure itself has not been altered and reports are submitted exactly the same way as before.
2019
Clarification on the impact for Swedish banks from revised Basel standards
In relation to the report published by the European Banking Authority (EBA) in August Finansinspektionen would like to make the following clarification on the impact for Swedish banks of the revised Basel standards. According to Finansinspektionen’s calculation, the increase in tier 1 minimum required capital would be about 30 per cent instead of 53 per cent as shown in the report from the EBA (keeping the assumptions and methodology set by EBA, but taking into account the current Swedish mortgage floor for the current risk-weighted assets).
FI opens sanction case in SEB investigation
FI is opening a sanction case in the investigation into Skandinaviska Enskilda Banken AB’s (SEB) governance and control of measures to combat money laundering in the bank’s subsidiaries in the Baltic countries.
FI Analysis 20: Fewer home equity withdrawals after amortisation requirements
This FI Analysis shows that households’ tendency to use mortgages for purchases other than buying a home decreased following the amortisation requirements.
FI Analysis 19: Young adults and the housing market
This FI Analysis shows that the the increase in house prices is the primary reason it has become more difficult for young adults to buy a home.
Planned service disruptions in FI’s reporting systems
From Monday, 2 December, to Tuesday, 10 December, all of FI’s reporting systems will experience service disruptions or closures due to planned maintenance and updates. The extent to which individual systems will be affected will vary.
Stability in the Financial System (2019:2)
The low interest rates are expected to remain low for a longer period of time. It could lead to greater risk-taking among various actors, and increased challenges for insurance undertakings.
Capital requirements of Swedish banks as of Q3 2019
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 2019.
Erik Thedéen: How we need to work to fight money laundering
“We need to make advancements in the fight against money laundering here and now, within the current system and regulatory framework,” asserted Erik Thedéen at the Swedish Bankers’ Association’s annual Bank Meeting.
FI’s work to combat money laundering and terrorist financing
Finansinspektionen (FI) strengthened its anti-money laundering supervision in 2019, in part by dedicating considerable resources to reviewing major Swedish banks’ governance and control of anti-money laundering measures in Baltic subsidiaries.
Euroclear Sweden AB receives authorisation to be central securities depository under CSDR
Finansinspektionen is granting Euroclear Sweden AB authorisation to act as a central securities depository under Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories (CSDR).
FI opens sanction case in Swedbank investigation
FI is opening a sanction case in the investigation into Swedbank AB’s governance and control of measures to combat money laundering in the bank’s subsidiaries in the Baltic countries.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) decided on 24 October not to change the countercyclical buffer rate. The buffer rate of 2.5 per cent, which has applied since 19 September 2019, shall thus continue to apply. The countercyclical buffer guide is set at 0.16 per cent.
FI Supervision 15: decreased transparency in bond trading
Transparency on the Swedish bond markets has decreased. This is the conclusion of Finansinspektionen’s (FI) analysis of the impact of the transparency rules that were introduced when the Directive and the Regulation for the securities market entered into force in 2018.
FI Analysis 18: Swedish risk premia and monetary policy
A disorderly and abrupt increase in international market rates could lead to significantly higher term and equity risk premia. This is the conclusion of an analysis conducted by FI.
Liquidity coverage ratio requirements and diversification of the liquidity buffer
FI presents its view on the specific requirements for liquidity coverage ratios in individual currencies. The authority also provides its interpretation of the diversification requirement on the liquidity buffer’s composition for Swedish covered bonds. FI will apply this approach to its supervision of banks belonging to Supervision Categories 1 and 2 on 1 October 2019.
ESRB recommendation to Sweden for vulnerabilities in the residential real estate sector
The European Systemic Risk Board (ESRB) has issued warnings to five EEA countries and recommendations to six EU countries for medium-term vulnerabilities in their respective residential real estate sectors. Sweden is one of the countries that receives a recommendation. The recommendation suggests appropriate actions to address the identified vulnerabilities. In 2016, the ESRB issued a warning to Sweden regarding risks in the residential real estate sector.
Martin Noréus resigns from FI
FI’s Deputy Director General and Executive Director of Banking, Martin Noréus, has resigned from his position at FI to become Chief Compliance Officer at Handelsbanken.
Reinhold Europe AB must pay administrative fine
Finansinspektionen (FI) has decided that Reinhold Europe AB must pay an administrative fine of SEK 750,000.
StrateVic Finance Group AB must pay administrative fine
Finansinspektionen (FI) has decided that StrateVic Finance Group AB must pay an administrative fine of SEK 1,500,000.
New rules on contingency mechanisms for a dedicated interface
New rules enter into force in the EU on 14 September 2019 on contingency mechanisms for a dedicated interface. Finansinspektionen would therefore like to provide the following information for firms under supervision.
New rules on strong customer authentication
FI is publishing a Q&A on new rules that will go into effect on 14 September.
Erik Thedéen: Climate and sustainability in focus at FI
FI’s Director General spoke today at the Finansdagen conference in Stockholm.
Martin Noréus: Capital and AML - current topics in bank supervision
At a conference today, Deputy Director General Martin Noréus shared his views on capital adequacy in Swedish banks and how capital adequacy will be impacted by forthcoming regulations. Mr. Noréus also gave a process update on ongoing AML investigations and concluded that money-laundering risks will become a bigger consideration in prudential supervision.
Comments to questions about conflict of interest in the supervision of Swedbank
Due to the announcement that Folksam’s CEO Jens Henriksson has been named President and CEO of Swedbank, FI has received questions about whether this gives rise to a conflict of interest since FI’s Director General Erik Thedéen was previously Managing Director of KPA, which Folksam owns together with SKL.
Timeframe for investigations into Swedish banks’ management of money laundering risks in the Baltics
During the month of July, FI sent notification letters to SEB and Swedbank as part of the investigations into the banks’ management and control of money laundering risks in Estonia, Latvia and Lithuania.
Capital requirements of Swedish banks as of Q2 2019
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 2019.
New Chief Legal Counsel
Eric Leijonram named Chief Legal Counsel at Finansinspektionen.
FI’s Director General Erik Thedéen reappointed to ESMA’s Management Board
FI’s Director General Erik Thedéen was reappointed to the Management Board of the European Securities and Markets Authority (ESMA) for a further 2½ year term.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) decided on 5 July not to change the countercyclical buffer rate. The buffer rate of 2.5 per cent, which will be applied as of 19 September 2019, shall thus continue to apply. The countercyclical buffer guide is set at 0.04 per cent.
Erik Thedéen's introductory speech at IOSCO SFN Stakeholder Meeting
Erik Thedéen made the introductory speech at the first IOSCO SFN Stakeholder Meeting in Stockholm.
Hoylu AB receives an administrative fine
Finansinspektionen (FI) has decided that Hoylu AB (Hoylu) must pay an administrative fine of SEK 2.1 million due to deficiencies in following the EU Market Abuse Regulation (MAR). Hoylu, a company in the field of communication, is an issuer listed on Nasdaq First North.
Swedish loans for consumption
The majority of consumption loans (non-mortgage loans) are small and have a high interest rate and a short maturity. However, it is households with large loans that represent the largest share of new lending, and these loans are growing at the fastest rate. The households with the highest income take out the largest loans. If the interest rate increases, many borrowers will need to use a large part of their income to make their interest and amortisation payments. This is evident in Finansinspektionen’s (FI’s) analysis of consumption loans, Swedish Consumption Loans.
Banks’ lending to commercial real estate firms requires more capital
Finansinspektionen (FI) considers the firms in the Swedish financial system to have sufficient resilience for withstanding a weaker economy. However, commercial real estate firms are vulnerable to shocks. FI therefore makes the assessment that the banks need more capital for these exposures. This is one of the conclusions in FI’s first stability report for the year, which is being presented today.
The Commercial Real Estate Market and Financial Stability
The commercial real estate market plays a key role in financial stability. The financial position of commercial firms is currently satisfactory, but many firms are vulnerable to higher interest rates and weaker economic growth.
Stability in the Financial System (2019:1)
Both the global and the Swedish economies appear to be slowing down. Low interest rates – which have resulted in high risk-taking and rising asset prices – are expected to remain low for a prolonged period of time. Resilience in the Swedish financial system is satisfactory in general. However, even if the banks’ resilience is satisfactory overall, FI makes the assessment that they need more capital to cover the risks in their lending to commercial real estate firms.
Requirement on IRB models for exposures to commercial real estate
FI has analysed the commercial real estate market and makes the assessment that it is vulnerable to shocks.
Capital requirements of Swedish banks as of Q1 2019
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 2019.
Nordic and Baltic financial supervisors enhance cooperation to fight money laundering
Heads of the Nordic and Baltic financial supervisors met today in Stockholm. They agreed on measures to enhance the cooperation between the authorities with the aim of fighting money laundering and terrorist financing.
FI Supervision 12: Insurance Undertakings’ Own Risk and Solvency Assessments
Finansinspektionen (FI) has conducted a survey of how insurance undertakings are performing their own risk and solvency assessments. FI is of the opinion that many undertakings’ assessments can be improved.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) decided on 6 May not to change the countercyclical buffer rate. The buffer rate of 2.5 per cent, which will be applied as of 19 September 2019, shall thus continue to apply. The countercyclical buffer guide is set at 0.15 per cent.
FI’s comments following publication in the media of extracts from verification letters
FI sends verification letters at an early stage of its investigation process, and the aim of this letter is to verify the facts of the case. Verification letters may at times also include preliminary assessments, but these assessments assume that the information FI received is correct and has been understood correctly.
TRS2 Test environment will be closed for an upgrade
On Wednesday, 29 April 2019, the test environment of TRS2 will be closed and not available due to an upgrade to a new version of the system. Finansinspektionen will announce when the system is available again.
Personal injury claims handling – a follow-up review
Insurance undertakings have taken steps to develop IT systems, customer communication and quality assurance since FI published its previous report on personal injury claims handling in 2017.
Erik Thedéen: Diversity on the mortgage market is healthy
FI’s Director General participated in the seminar Evolution of Mortgage Finance arranged by Stabelo for a broad group of institutional investors.
Consumer Protection Report 2019
In this report, Finansinspektionen (FI) presents the most prioritised consumer risks it has identified for 2019. FI also presents the experiences from its consumer protection work over the past year. Finally, FI identifies two areas on the financial market where consumer protection is clearly deficient and proposes regulatory changes to fill these gaps.
FI comments on the recent events involving Swedbank
Over the past few weeks, the media has reported on potentially major problems related to money laundering primarily in Swedbank’s Estonian operations. These reports have caused the bank’s share price to fall and had a negative impact on the bank’s reputation.
The Swedish Mortgage Market (2019)
High debt can mean risks for individual households, banks, financial stability and macroeconomic development. The mortgage survey serves as an important basis for the assessment of the risks associated with household debt.
FI-analysis 17: Fewer Vulnerable Households after Stricter Amortisation Requirement
Under FI's stricter amortisation requirement, which went into effect on 1 March 2018, new mortgagors with debt in excess of 450 per cent of gross income must amortise 1 percentage point more of their loan per year in addition to the existing requirement. The objective of the stricter requirement is to strengthen resilience of households by decreasing the number of mortgagors who have high debt in relation to their income.
More households are amortising, but households still have high debt
New mortgagors are amortising, borrowing less and buying less expensive homes, but many still have high debt. These are FI’s conclusions in this year’s mortgage report. FI is also publishing an FI Analysis that shows the stricter amortisation requirement has reduced the percentage of borrowers with high debt in relation to their income.
FI Analysis 16: How do covered bonds function?
This FI Analysis describes how Swedish covered bonds function, how the regulation governing the cover pool is designed and how the cover pool is affected by a fall in house prices.
Report from Forensic Risk Alliance is part of FI’s investigation
FI has received a copy of Swedbank’s external review that was initiated by reports in the media of suspected money laundering in the Baltics.
FI has received report on suspected money laundering
FI confirms that it received a report from Swedbank on 1 March regarding suspected money laundering.
Erik Thedéen: Swedish perspectives on the Banking Union
Erik Thedéen, Director General of Finansinspektionen, took part in a seminar on “The Banking Union from a Nordic-Baltic perspective” arranged today by SIEPS and the Swedish Government’s “Committee on Potential Participation in the European Banking Union”.
FI strengthens its international supervisory collaboration against money laundering
“We are taking the initiative to strengthen our international supervisory collaboration against money laundering and we are redistributing our own resources to increase our supervision capacity,” says FI’s Director General Erik Thedéen after today’s meeting with Minister for Financial Markets and Housing Per Bolund.
FI’s liquidity coverage ratio requirements in individual currencies and diversification of covered bonds in the liquidity buffer
In this memorandum, Finansinspektionen (FI) develops its view on several specific areas of the EU regulatory framework for liquidity regulation.
FI’s comments regarding customer relationships and confidentiality
SVT’s investigative journalism program Uppdrag Granskning has reported on certain transactions that occurred through Swedbank’s operations in the Baltics.
Capital requirements of Swedish banks as of the fourth quarter 2018
Finansinspektionen publishes the capital requirements of the largest Swedish banks and credit institutions that belong to the supervisory categories 1 and 2 as of the end of the fourth quarter 2018.
FI’s comments on the supervision of anti-money laundering activities in the Baltics
Due to the reports in the media regarding suspected money laundering in Swedbank’s Estonian operations, FI is issuing the following comments.
Joint statement by the Estonian and Swedish Financial Supervisory Authorities
Eesti Finantsinspektioon (the Estonian FSA) and Finansinspektionen (the Swedish FSA) consider the reports regarding suspected money laundering that yesterday were made public yesterday on Swedish television (SVT) to be very serious. It is extremely important that the banks’ senior management and boards of directors view these matters seriously and take all necessary actions to ensure compliance with laws and regulations.
FI’s comments on Uppdrag Granskning’s disclosures regarding suspected money laundering
FI considers the disclosures regarding suspected money laundering presented by SVT’s program Uppdrag Granskning to be very serious. FI’s Director General Erik Thedéen has made the assessment in several interviews in conjunction with the events in Danske Bank that the possibility of Swedish banks being involved in money laundering cannot be ruled out entirely, but that the scope is most likely more narrow than what has been identified in Danske Bank.
FI's comments regarding the supervision of money laundering
We consider the recent disclosures regarding money laundering and other regulatory infringements in Swedish banks to be very serious. It is extremely important for the banks' management teams and boards of directors to take these matters seriously and ensure that the banks are following the laws and regulations.
Avanza Pension receives warning and administrative fine
FI is issuing Avanza Pension a warning for insufficient management of technical provisions and reporting. Avanza Pension must also pay an administrative fine of SEK 35 million.
TRS 2 will be closed for servicing
On Wednesday, 20 February, the TRS 2 system will not be available at the beginning of the day due to a service window. The system is planned to reopen after 4 p.m.
ESMA postpones changes to transaction reporting
The European Securities and Markets Authority (ESMA) has announced that the transition to the new XML Schema and updated validation rules will not occur on Monday, 18 February 2019, as earlier planned. It will now be postponed until Q3 2019.
Request for the release of documents, FI’s decision and the rulings of the Administrative Court of Appeal
FI would like to clarify which decisions FI has made, which decisions were appealed and which rulings the courts announced with regard to a number of investigations into money laundering at Swedish banks.
FI’s View on Preconditions for Mortgage-Based Business Activities
In Sweden, the traditional bank-based financing model for issuing and financing mortgages is currently being supplemented by models where mortgages are being financed in new ways, e.g. alternative investment funds (AIF).
Statement regarding Nordic-Baltic financial crisis simulation, January 2019
The Nordic and Baltic financial stability authorities have conducted a joint financial crisis management exercise. The exercise was held from 22 to 23 January 2019 and involved 31 authorities from Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden as well as relevant European Union authorities. A staff member of the International Monetary Fund observed the simulation.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) decided on 30 January not to change the countercyclical buffer rate. The buffer rate of 2.5 per cent, which will be applied as of 19 September 2019, shall thus continue to apply. The countercyclical buffer guide is set at 0.29 per cent.
