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.

In connection with the publication, FI is changing to a new process for determining the countercyclical buffer rate. From this point onwards, FI will not be making quarterly decisions about the buffer rate. FI will still be making an assessment on a quarterly basis, but a new decision will only be taken if the buffer rate is changed, or if there is a need to provide clearer guidance. The countercyclical buffer guide will however continue to be set on a quarterly basis.

The new process follows from the Amendment Act (2020:1212) to the Capital Buffers Act (2014:966). According to this, FI shall determine a countercyclical buffer rate as and when needed, but set a countercyclical buffer guide each quarter.