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 12 September 2023, FI, through Article 458 of the Capital Requirements Regulation, informed the the European Commission and the European Systemic Risk Board (ESRB) that FI intends to extend the current risk-weight floor of 25 per cent for Swedish mortgages.

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 until 30 December 2023. FI will make its final decision on the matter before the measure expires.