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.
2014
FI intends to implement a partial waiver for covered bonds
The European Banking Authority (EBA) has published its opinion regarding the Danish FSA's proposal of a partial waiver from the application of Article 129 (1)(c) of the Capital Requirements Regulation (CRR). Finansinspektionen will also implement the partial waiver within its jurisdicition.
Finansinspektionen and financial stability
Financial stability is the ability of the financial system to uphold its core functions in changing economic conditions. Besides resilience of the financial system, FI has been given responsibility for counteracting imbalances on the credit market.
FI's methods for assessing individual types of risk within Pillar 2
This memorandum describes FI's methods for assessing the capital adequacy requirement within the framework of Pillar 2 for three different types of risk.
Stability in the financial system 2014
In FI's opinion, resilience in the fi nancial system is currently satisfactory. FI's increased capital requirements have helped improve the resilience of banks. At the same time, the banks' need for market funding makes the fi nancial system vulnerable to shocks.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
Leverage ratio requirement for Swedish banks
Finansinspektionen (Swedish Financial Supervisory Authority – FI) considers that a leverage ratio requirement may serve an important function for establishing financial stability in Sweden as a back-stop, which sets a floor for how low the capital adequacy requirement can fall in relation to the banks' gross assets.
Swedish insurance companies assessed in stress test
The European Insurance and Occupational Pensions Authority, EIOPA, has conducted EU-wide stress tests to assess the resilience of European insurance undertakings to adverse market developments. In the Swedish part of the exercise, ten large insurance groups and insurance companies, who account for more than half of the Swedish insurance market, participated.
Victory Life put into liquidation (updated information)
Foreign insurance provider Victory Life has been put into liquidation as of 25 November 2014 by the order of a court of the British Virgin Islands.
Finansinspektionen’s view on the amortisation requirement
Household debt does not represent a risk to financial stability, but it does increase the macroeconomic risks. If designed to be flexible, an amortisation requirement could reduce these risks.
Amortisation by mortgage holders increased since the introduction of individual amortisation plans
New mortgage holders are more likely to amortise after the banks introduced individually tailored amortisation plans as of 1 July 2014. The ongoing debate in the media about amortisation and that the Swedish Bankers’ Association has tightened its recommendations regarding amortisation may also have contributed to the increase in amortisation payments.
Stability risks associated with household indebtedness
FI makes the assessment that the risks associated with household debt have not yet reached alarming levels. However, there are also macroeconomic risks associated with rising household indebtedness.
Measures to counteract household indebtedness – amortisation requirement
FI makes the assessment that an amortisation requirement that is applied in a flexible manner will strengthen in the long run household resilience to shocks. An amortisation requirement will keep house prices down and slow the rate at which debt is growing, and higher amortisation payments will help households reduce their debts and thus their interest expenses.
Swedish banks pass the European stress test
FI has tested the resilience of the major Swedish banks to a sharp deterioration in the economy. The study is part of the extensive stress test of 123 European banks coordinated by EBA.
Enforcement of financial information
2014-10-15 | Reports
Finansinspektionen (FI) is responsible for ensuring that enforcement of periodic financial information is of high, consistent quality.
Capital requirements for Swedish banks
Finansinspektionen presents positions to ensure that the Swedish banking system stands more robustly equipped to withstand future financial crises.
Skandiabanken: adverse remark issued and administrative fine of SEK 10 million imposed
There have been inadequacies in the investment advice that Skandiabanken Aktiebolag has provided through tied agents. The bank has not complied with the rules applicable for receiving commission nor dealt with conflicts of interest in the correct manner.
Stability in the financial system
Sweden has a large and interlinked financial system that is dominated by four major banks. Several measures have been taken in recent years to strengthen its stability, and Finansinspektionen (FI) finds that resilience in the financial system is currently satisfactory.
Authorisation for a bank merger in Skåne
Finansinspektionen has decided to approve the reorganisation of Sparbanken 1826.
Consumer protection on the financial market
Consumers on the financial market face a series of challenges and problems. For example, many savings products are complex, advice is often poor and information is, in many cases, deficient or difficult to understand.
Reinhold Europe shall pay penalty fee for the failure to publish financial information
By a decision made on May 12th 2014, Finansinspektionen has decided that Reinhold Europe AB (formerly Reinhold Polska AB) shall pay a penalty fee of SEK 1 500 000 for the failure to publish periodic financial information.
Capital requirements for Swedish banks
On 3 April, the Government presented a bill regarding strengthened capital adequacy rules.
The Swedish Mortgage Market 2014
2014-04-10 | Reports
A smoothly functioning credit market is fundamental to the ability of modest-wealth households to purchase a home. However, high indebtedness carries a risk for individual households, and can pose a risk to financial stability. It is therefore important for Finansinspektionen (FI) to monitor developments in household indebtedness.
Supervision of the financial infrastructure works well
Finansinspektionen's and The Riksbank's joint internal audit has assessed the supervision and oversight of the financial infrastructures in Sweden on the basis of the "Principles for financial market infrastructures” (PFMIs) which Finansinspektionen use in its supervision and The Riksbank in its oversight.
Nasdaq OMX Clearing receives authorisation to be a central counterparty
Finansinspektionen grants Nasdaq OMX Clearing authorisation to act as a central counterparty in accordance with the EU’s regulation regarding OTC derivatives, central counterparties and transaction registers (EMIR).
Martin Noréus becomes Deputy Director General
FI is expanding and strengthening its organisation with a new position. As of 1 February, Martin Noréus is Deputy Director General.
FI withdraws the authorisation of Exchange Finans
Finansinspektionen withdraws the authorisation to conduct financing business of Exchange Finans Europe.
FI withdraws the authorisation of Festival International
Finansinspektionen withdraws the authorisation of Festival International to conduct investment services.
2013
Bank interest rates and lending, Q3 2013 (Summary)
In this report, Finansinspektionen (FI) describes the banks' adaptations to higher capital requirements and the effects on households and non-financial firms.
Risks in the financial system 2013
Swedish banks are relatively strong, but they continue to be vulnerable to disruptions on the financial markets, and the development within the Euro zone continues to represent a risk to the Swedish financial system.
Bank interest rates and lending, Q1 2013 (Summary)
2013-05-28 | Reports
The development of the margins of new mortgages slowed during Q1 2013. Both the banks' funding cost and households' lending rate for new mortgages continued to fall during the quarter.
Supervision Report 2013
Many of the development trends in today’s financial markets raise important issues for FI. For consumers, greater mobility and increasingly complex financial products represent not only more opportunities but also higher risks. FI needs to bring attention to these risks and resolve them.
Decision to implement a risk weight floor for mortgages
FI is implementing a risk weight floor of 15 per cent for Swedish mortgages. The floor will be implemented as a supervisory measure within Pillar 2.
Finansinspektionen's role in a framework for financial stability
Macroprudential supervision is not a new concept; it has always been a part of traditional supervision work. This statement was part of Martin Andersson's speech at the Bank & Finans Outlook conference on March 20.
The Swedish Mortgage Market
This report is based on Finansinspektionen's (FI's) third large mortgage survey. The survey is based on comprehensive material from the eight largest banks in Sweden.
Implementation of the European supervisory authorities’ guidelines and recommendations
Finansinspektionen finds that guidelines from the European supervisory authorities addressed to competent authorities or financial market participants are equivalent to Swedish general guidelines.
2012
Bank interest rates and lending, Q4 2012 (summary)
Both the banks' funding cost and lending rates to households and corporations fell sharply during the fourth quarter of 2012 while the banks' margins on new mortgages increased slightly. Lending to Swedish corporations and households increased during the fourth quarter, but at a slower rate than before. During 2013 Finansinspektionen (FI) will investigate potential measures for how credit institutions can increase the awareness of their customers for how the actual lending rates for mortgages are determined.
Bank interest rates and lending, Q3 2012
Swedish banks have already largely adapted to the forthcoming requirements regarding capital adequacy and access to liquidity. The stricter requirements involve a cost, but also help improve stability in the financial system. On the whole, the forthcoming requirements will generate positive effects for the national economy.
Risks in the financial system 2012
Finansinspektionen’s (FI’s) 2012 risk report 2012 continues to focus on unease on financial markets, where the greatest risk to the Swedish financial system is still a deepened sovereign debt crisis in Europe. Because of low market rates, life insurance undertakings are under pressure, and FI now sees a risk of consumers ending up in a squeeze as the firms review their commitments. This year too, FI views the financial advice market with concern. In this market, consumers are being invited to invest in complex products while advisors receive commissions.
Bank interest rates and lending, Q2 2012
The growth rate of lending to households and corporations is decreasing, but remains positive and is clearly higher than the corresponding figure for the eurozone. Banks' margins on mortgages increased in the same period, according to the second quarterly report.
Supervision Report 2012
The issues presented in this year’s Supervision Report stem from the work on financial consumer protection, financial stability and the requirements on company owners and management. In addition, the report discusses the increased international work, primarily within the EU.
Market risks management
During 2011, Finansinspektionen (FI) investigated how 11 financial companies market risks management. ‘Market risk’ refers to the risk of loss-incurring value changes in assets and liabilities due to fluctuations in interest rates, foreign exchange rates, stock prices and commodity prices.
Bank interest rates and lending, Q1 2012
In order to strengthen financial stability and avoid future financial crises, new regulations for the banking sector are being prepared. The regulations include higher capital adequacy requirements.
The Swedish Mortgage Market
Loan-to-value ratios decreased for the first time in 10 years and the share of households with new loans over 85 percent has fallen by fifty per cent since 2009. These are some of the findings in Finansinspektionen’s follow-up of the mortgage cap.
Investigation into high frequency and algorithmic trading
High frequency trading contributes to – but is not responsible for – changes in trading. But there is still considerable concern that market abuse has increased and supervision is insufficient. These are the main conclusions from Finansinspektionen’s investigation.
2011
Risks in the financial system 2011
Sweden has remained relatively stable in a turbulent period but during this time the risk level in the Swedish financial system has also risen. The uncertainty in surrounding markets has meant that banks’ liquidity risks and the impact of low interest rates on life insurance undertakings remain in focus. Finansinspektionen also believes there is a risk that the sale of complex products to consumers will increase.
Bonuses: Are companies following the rules?
Finansinspektionen (FI) received an assignment from the Government to report on the implementation of the EU Recommendation on remuneration in the financial services sector, the measures taken to ensure compliance with the new rules and how affected companies have adapted to the recommendations.
Supervision Report 2011
Finansinspektionen's annual Supervision Report discusses areas in which fundamental issues with regard to supervision and regulatory development have risen to the forefront and in turn have resulted in new lessons and conclusions.
2010
Risks in the financial system 2010
Finansinspektionen believes the risk level in the Swedish financial sector is lower than last year. Both Sweden’s economy and the situation on the financial market have improved. However, the uncertainty present in foreign markets represents a potential threat to Sweden’s development.
Lessons learned from supervision and regulatory development
FI's annual Supervision Report describes the lessons learned from the financial crisis as well as more general issues regarding consumer protection.
2009
Unwarranted concern for account fraud
The concern for being victimised by account fraud is greatly unwarranted, according to FI’s survey of 2,898 private persons. The survey, conducted during 2008, found that an estimated 1 per cent of the adult population was defrauded that year. The majority, 84 per cent, of those with claims were fully or partially refunded. The expectations of being refunded were considerably lower, however.
Risks in the financial system 2009
Finansinspektionen is charged with ensuring that the financial system isstable and efficient and that consumer protection is adequate. We carry outthese assignments by conducting supervision of financial companies, whichincludes business intelligence, the granting of licences, preparation of egulations,operational supervision with controls of how companies act andpotential interventions.
The insurance barometer (2009:12)
The insurance barometer, at a total level, summarises the outcome of the insurance companies’ reporting to Finansinspektionen using the traffic light model and solvency for the last five six-month periods.
The households’ financial capability
The majority of the Swedish households have a strong personal financial position and save for the long-term. Most of them have access to a bank account and payment services and three out of four pay by the Internet. This is according to the responses of 1,309 households regarding personal finances. The survey was conducted for FI by Svenskt Kvalitetsindex during the first quarter of 2009.
Consumer protection in the financial markets
FI assesses that the consumer’s position on the financial market is good in general, despite significant conflicts of interest and the complexity of many services. The supply of financial services and number of options has increased over the past decade. This leads to more financial decisions and increased exposure for various risks, and imposes stricter requirements for the consumer’s knowledge.
The banks’ lending for commercial real estate in Sweden
Based on input reported statistical material, we find that the current financial crisis has yet to make any obvious impression in the form of insolvency and credit losses in lending for commercial real estate.
The banks’ financial advice and the law
The overall conclusion is that there is a good census of opinion between bank customers and advisors about how the advisory service should work. Both advisors and customers feel that the advice lives up to the legal requirements.
Development on the mortgage market
Finansinspektionen (FI) has surveyed the development in the banks’ lending for single-family houses and tenant-owner’s flats. At the end of 2008, Swedish households had approximately SEK 1,800 billion in mortgage loans. The investigated banks’ lending constitutes just under 90 per cent of this.
Insurance intermediaries. In the borderland between marketing and mediation
During 2008, FI has conducted a survey of the insurance intermediaries’ operations. The survey has covered 850 insurance intermediaries who have answered a questionnaire containing questions about the operations.
Follow-up of technical provisions within life insurance
We can conclude that several insurance companies (life insurance companies and occupational pension funds) have deficits in their technical provisions and that the primary reason is an underestimation of the policyholders’ life expectancy rates.
How firms have complied with the new securities regulations
The investment firms have made active efforts to adapt to the new regulations for the securities market, the so-called MiFID regulations. This is according to FI’s major review of banks and investment firms during 2008. The investigation has resulted in viewpoints on several areas, many of which aim at strengthening consumer protection.
Complicated financial instruments in occupational pension funds
The occupational pension funds* predominantly have no large holdings or concentrations of complicated financial instruments.
Reclassification of financial assets
Five out of eight banks investigated utilised new opportunities to assess certain financial assets at amortised cost instead of fair value in connection with the interim reports for Q3 2008.
2008
Investment fund annual reports
Finansinspektionen (FI) can conclude that, on the whole, the annual reports reviewed comply with the regulatory requirements – but that improvements can be made in terms of some of the contents. The information in the annual reports shall enable mutual fund investors to assess the fund’s performance as well as provide a basis for fund comparisons.
The insurance companies’ routines for assets covering technical provisions
Our investigation of some 20 insurance companies shows that the companies are managing their register of assets covering technical provisions in a satisfactory manner.
Suitable TV insurance
Consumers are often offered product insurance when they purchase electronic products. If the consumer accepts, the insurance agreement is printed out and signed in the store.
On the way to new European insurance regulations
We are facing great challenges in the insurance sector. A previously typically national, tightly regulated and protected market has been internationalised and subjected to competition. In addition to this is the EU’s overall ambition to create a genuinely inte-grated and common financial market. The aim is to increase competition and effi-ciency, thereby increasing growth and welfare in Europe. The new regulations for sol-vency calculation, Solvency 2, are an important step along the way. This is going to lead to improved methods for analysis and governance of the companies’ risks.
IT disruptions at a constant, high level
IT disruptions are increasing at some companies and decreasing at others. On the whole, the number of disruptions remains at a constant, high level.
NGM's licence reinstated
The Stockholm County Administrative Court has decided that NGM's licence to operate a regulated market and trading facility shall not be revoked. NGM shall instead be issued a warning and a financial penalty of SEK 4.5 million to the government in accordance with Finansinspektionen’s proposal.
The Swedish banks can manage the recession (2008:18)
The four Swedish big banks have managed relatively well so far in the international bank crisis. Financing risks has been the greatest threat to Swedish banks during the autumn's turbulence. Thanks to measures by the Riksbank (Swedish central bank) and the Swedish National Debt Office, these risks have been managed to a great extent until the financing markets begin to function normally again.
A changing pension market
The competition on the life insurance market is increasing. The pensions based on collective bargaining constitute an increasing share of the total life insurance market. Changed tax regulations are affecting motives and opportunities to take out insurance or supplement private insurances. Other types of investment are challenging life insurance companies and that creates new insurance products with a limited insurance element. FI has surveyed the procurement of supplementary pensions for salaried employees and analysed risks that procurements can entail for a changing pension market.
Processing of complaints in the financial sector II
All of the 150 companies contacted report that they have routines for processing complaints. This is a significant improvement compared with the survey that Finansinspektionen conducted in 2005.
FI tightens control of insurance groups
Finansinspektionen has reviewed 51 companies that did not report that they are a part of an insurance group. The result was that 47 of these companies were a part of an insurance group and should thereby have reported to FI. These companies have been informed that they are supposed to report for the year 2007.
Allocation of surplus in traditional life insurance
It is not unusual that as much as one-fourth or more of a final pension is comprised of additional amounts that are based on surpluses. It is therefore significant how the company distributes its surplus to the customers.
The consumer protection on the financial market
Swedish consumers use financial products and services more and more. This makeseveryday life easier and it provides an opportunity to manage risks and to make a goodprofit from savings. This development also benefits the society as a whole.
Not everyone can pay
Not everyone has access to payment services such as giro services or internet banking. It is mainly people with a record of non-payment and those without Swedish civic registration or coordination numbers who lack access to such services. Those who are denied payment services are forced to pay their bills through the banks’ counter service which incurs high costs and is time inefficient.
Children’s insurance – a review of information and compensation
Parents who have a seriously ill child are entitled to compensation through the Swedish Social Insurance Administration. Those who choose temporary parental benefits can jeopardise their right to compensation from their child’s sickness and accident insurance.
The responsibility for the payment system
That the payment system functions and can withstand both internal andexternal incidents such as fire, flooding, power failures, etc. is of greatimportance to the national economy.
Market turmoil and the Swedish banks
The Swedish banks have managed relatively well in the international turbulence prevailing on the financial markets. The four major banks made record profits in 2007 and they all have good financial strength. There are, however, risks in the near future as well as in the long-term. Although these risks are relatively serious, no individual risk is considered to pose a threat to the stability. FI continues to closely monitor the development.
Valuation of unlisted holdings in investment funds
Finansinspektionen can conclude that there is a need for broader guidance in terms of the fund management companies’ routines to valuate assets that are not traded on a regulated market.
The development on the mortgage loan market
The banks’ risk exposures to the Swedish mortgage loan market have increased due to higher mortgage levels and long amortisation periods. The mortgage lending to Swedish households constitutes the largest exposure in the majority of the banks.
Evaluation of securities settlement in Sweden in 2007
The financial markets have several important functions. They convert savings into investments, supply tools for risk management and offer payment services. Securities transactions are essential for all three functions. Securities acquisitions are a way of investing while pledging securities is a way of reducing credit exposure risks.
