FFFS 2014:33

Finansinspektionen’s regulations regarding the countercyclical buffer rate

In force from 2014-10-01

Summary

The regulations set the countercyclical buffer rate for Sweden.

Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set countercyclical buffer guides and countercyclical buffer rates. The countercyclical buffer rate shall be applied by credit institutions, investment firms, Svenska skeppshypotekskassan, fund management companies with discretionary portfolio management and alternative investment fund (AIF) managers licensed to conduct discretionary portfolio management when calculating the institution-specific countercyclical capital buffer.

FI has decided that the countercyclical capital buffer for Sweden is to be activated and set at 1 per cent given the present economic conditions. The decision is based on a qualitative assessment that takes account of quantitative factors, including a set buffer guide of 1.25 per cent.

Amendments

FI has decided to raise the buffer rate from 2.0 to 2.5 per cent. The reason for this change is that the systemic risks have increased. A larger buffer increases the resilience in the banks and is needed to enable the banks to maintain their lending activities even if a crisis were to emerge in the future.

The change affects credit institutions, Svenska Skeppshypotekskassan, and some securities companies.

The amendments will enter into force on 19 September 2019. Amendment 2018:17

FI decided on 14 March 2016 to raise the buffer rate to 2.0 per cent (FFFS 2016:15). Amendment 2016:15

Finansinspektionen (FI) has decided to increase the countercyclical capital buffer for Sweden to 1.5 per cent as of 27 June 2016.

FI shall, in accordance with Capital Buffers Act (2014:966), set a countercyclical buffer guide and countercyclical buffer rate each quarter. The countercyclical buffer rate shall be applied by credit institutions, investment firms, Svenska skeppshypotekskassan, fund management companies with discretionary portfolio management and alternative investment fund (AIF) managers licensed to conduct discretionary portfolio management when they calculate the firm specific countercyclical capital buffer.

FI decided in September 2014 to set a countercyclical capital buffer for Sweden at 1.0 per cent (FFFS 2014: 33). This buffer rate shall apply as of 13 September 2015.

FI decided on 22 June 2015 to increase the buffer rate to 1.5 per cent (FFFS 2015: 5). The countercyclical buffer guide was set at 1.5 per cent.

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