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.

On 20 September 2021, FI, through Article 458 of the Capital Requirements Regulation, informed the European Parliament, the European Council, the European Commission, the European Systemic Risk Board (ESRB) and the European Banking Authority (EBA) that the authority intends to extend the current risk-weight floor of 25 per cent for Swedish mortgages.

EBA and ESRB previously announced that they do not object to an extension of the risk-weight floor. The European Commission has now decided not to propose to the European Council an implementing act that rejects the extension. This means that the measure may be implemented in Sweden.

The current risk-weight floor is valid through 30 December 2021. FI will make its final decision on the matter before the measure expires.