FI publishes methods for assessing capital requirements for three important risk types

FI has taken into consideration the feedback received to the consultation memorandum published in December 2014 and has made certain changes to the methods now published. The memorandum also includes an updated impact assessment.

The aggregate capital requirements for the three risk types are estimated at 1.6 per cent of the total risk-weighted exposure amount on average for the four major Swedish banks, and on average 2.0 per cent for the other six large banks for which FI publishes capital requirements. This in line with the estimation published in the consultation memorandum.

In addition to this, banks are expected to keep additional capital for risk types not covered by FI's methods. Certain method and calibration adjustments have been made to the methods compared to how they were described in the consultation memorandum.

FI's methods will be used in this year's supervisory capital assessment (SREP) and the capital requirements published by FI will include the capital requirements that follow from the new methods as of the third quarter of 2015.

Until then, FI will continue to use the standardised amount of a 2.0 per cent total capital requirement for the ten largest firms.
In FI's opinion, all concerned banks will be able to meet these requirements.