Finansinspektionen (FI) has been commissioned by the Government to report on the bank's internal rules regarding credit granting to companies from the perspective of the environment and sustainability. If necessary, FI shall present proposals for measures that can be included in the banks' credit granting process to promote such a perspective.
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
Alternative forms of funding can have a positive effect on the competition in and efficiency of the financial market by enabling more projects to find funding even if, for example, banks are not willing to grant a loan. However, crowdfunding introduces certain risks for consumers.
This FI-analysis introduces a model for household debt in Sweden.
The market for covered bonds is important for bank funding and therefore financial stability. The requirements for banks to hold more capital and liquidity for their operations have been tightened since the financial crisis. These requirements affect the banks' costs of holding securities in the trading book and so their costs of acting as market makers.
FI regularly monitors the vulnerabilities in the financial system. FI is now taking this a step further by creating a categorization for grouping and studying indicators of vulnerability. A systematic review of indicators helps to identify and follow vulnerabilities, which makes it easier to understand the risks of financial or macroeconomic instability.
Resilience in the Swedish financial system is satisfactory. However, the sharp rise in housing prices means that household debt is growing rapidly.
FI today disclosed for the first time the actual capital requirements for the ten largest Swedish banks and credit institutions at the end of the third quarter of 2015. This is to increase clarity with regard to the effects of FI's capital requirements, including Pillar 2.
Summary of the speech by Finansinspektionen's Director General Erik Thedéen at the Centre for Business and Policy Studies' seminar on the economic situation on 19 November 2015.
The Government has today appointed Erik Thedéen as the new Director General of Finansinspektionen.
FI's acting Director General Martin Noréus held the speech "Amortisation requirement and risk weights – two current issues for macroprudential policy" at UBS annual Nordic Financial Services Conference on 10 September 2015.
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
Finansinspektionen publishes the capital needs of the ten largest Swedish banks and credit institutions as of the end of the second quarter 2015.
Finansinspektionen decides to recognize countercyclical buffer rates up to 2.5 per cent that are set by the designated authority of another EEA country. The firms concerned shall use these buffer rates to calculate their firm specific countercyclical capital buffers.
At the Financial Stability Council meeting of 15 June, Finansinspektionen presented its views on the future structure of banks' capital requirements.
When representatives of the Government, Finansinspektionen (the Swedish Financial Supervisory Authority), the Riksbank and the Swedish National Debt Office met on 15 June in the Financial Stability Council, the authorities all contributed reports as bases for discussion. A summary of the report on driving forces behind household indebtness is now published.
In this report, Finansinspektionen, Sveriges Riksbank and the Swedish National Debt Office present a general description of the driving forces behind the rise in household indebtedness. A central conclusion in the report is that indebtedness is largely linked to developments on the housing market.
FI intends to comply with the European Banking Authority's (EBA) guidelines on criteria to assess other systemically important institutions (O-SIIs).
The objective of Finansinspektionen's supervision of insurance undertakings is to monitor their ability to fulfil their commitments to customers, and to monitor that customers receive comprehensible and accurate information. This report focuses on the first of the above-mentioned primary objectives.
FI has decided to launch a new report series, FI-analysis. This is our first report in this series where FI presents studies and analysis of questions that is of particular importance to FI.
Finansinspektionens assessment is that the resilience in the financial system is currently satisfactory.
Finansinspektionen publishes the capital needs of the ten largest Swedish banks and credit institutions as of the end of the first quarter 2015.
Handelsbanken has not complied with the money laundering rules. The bank has not conducted risk assessments for all of its customers or obtained sufficient information about customers and their business relations. The bank's system for reviewing transactions has also been deficient.
There have been major deficiencies in Nordea's work to prevent money laundering. This means there is a high probability that if people have tried to launder money or finance terrorism that they could have done so without Nordea having been able to detect this.
In this report, Finansinspektionen (FI) describes the most prioritised areas in which consumer protection on the financial market needs strengthening. Such areas include tightened rules for advice on financial products, better pension information and measures against closet index funds.
Finansinspektionen (FI) establishes methods for assessing Pillar 2 capital requirements for three types of risk: credit-related concentration risk, interest rate risk in the banking book and pension risk.
The Government has today decided to appoint Martin Noréus as acting Director General until such time as an ordinary Director General is appointed.
Finansinspektionen monitors the mortgage market and household indebtedness closely, and the mortgage survey is an important part of that process. The survey for 2014 shows that the average loan-to-value ratio and debt-to-income ratio was unchanged between 2013 and 2014, despite rapidly increasing house prices.
Martin Andersson is leaving his post as Director General of Finansinspektionen (FI) to become a partner with the consultancy firm Oliver Wyman.
Three key areas are the focus of FI's new report Supervision of the securities market; financial infrastructure, transparency on the securities market as well as new rules for market supervision and the enforcement of financial information.
FI:s Director general Martin Andersson held the speech Finansinspektionen and macroprudential policy at Affärsvärldens Bank och Finans Outlook on 18 march 2015.
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
FI:s Director general held the speech One year with the new macroprudential policy at Centre for Business and Policy Studies/Finance panel on 19 februar 2015.
Finansinspektionen publishes today the capital needs of the ten largest Swedish banks and credit institutions as of the end of the fourth quarter 2014.
The European Banking Authority (EBA) has published its opinion regarding the Danish FSA's proposal of a partial waiver from the application of Article 129 (1)(c) of the Capital Requirements Regulation (CRR). Finansinspektionen will also implement the partial waiver within its jurisdicition.
Financial stability is the ability of the financial system to uphold its core functions in changing economic conditions. Besides resilience of the financial system, FI has been given responsibility for counteracting imbalances on the credit market.
This memorandum describes FI's methods for assessing the capital adequacy requirement within the framework of Pillar 2 for three different types of risk.
In FI's opinion, resilience in the fi nancial system is currently satisfactory. FI's increased capital requirements have helped improve the resilience of banks. At the same time, the banks' need for market funding makes the fi nancial system vulnerable to shocks.
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
Finansinspektionen (Swedish Financial Supervisory Authority – FI) considers that a leverage ratio requirement may serve an important function for establishing financial stability in Sweden as a back-stop, which sets a floor for how low the capital adequacy requirement can fall in relation to the banks' gross assets.
The European Insurance and Occupational Pensions Authority, EIOPA, has conducted EU-wide stress tests to assess the resilience of European insurance undertakings to adverse market developments. In the Swedish part of the exercise, ten large insurance groups and insurance companies, who account for more than half of the Swedish insurance market, participated.
Foreign insurance provider Victory Life has been put into liquidation as of 25 November 2014 by the order of a court of the British Virgin Islands.
Household debt does not represent a risk to financial stability, but it does increase the macroeconomic risks. If designed to be flexible, an amortisation requirement could reduce these risks.
New mortgage holders are more likely to amortise after the banks introduced individually tailored amortisation plans as of 1 July 2014. The ongoing debate in the media about amortisation and that the Swedish Bankers’ Association has tightened its recommendations regarding amortisation may also have contributed to the increase in amortisation payments.
FI makes the assessment that the risks associated with household debt have not yet reached alarming levels. However, there are also macroeconomic risks associated with rising household indebtedness.
FI makes the assessment that an amortisation requirement that is applied in a flexible manner will strengthen in the long run household resilience to shocks. An amortisation requirement will keep house prices down and slow the rate at which debt is growing, and higher amortisation payments will help households reduce their debts and thus their interest expenses.
FI has tested the resilience of the major Swedish banks to a sharp deterioration in the economy. The study is part of the extensive stress test of 123 European banks coordinated by EBA.
Finansinspektionen (FI) is responsible for ensuring that enforcement of periodic financial information is of high, consistent quality.
Finansinspektionen presents positions to ensure that the Swedish banking system stands more robustly equipped to withstand future financial crises.
There have been inadequacies in the investment advice that Skandiabanken Aktiebolag has provided through tied agents. The bank has not complied with the rules applicable for receiving commission nor dealt with conflicts of interest in the correct manner.
Sweden has a large and interlinked financial system that is dominated by four major banks. Several measures have been taken in recent years to strengthen its stability, and Finansinspektionen (FI) finds that resilience in the financial system is currently satisfactory.
Finansinspektionen has decided to approve the reorganisation of Sparbanken 1826.
Consumers on the financial market face a series of challenges and problems. For example, many savings products are complex, advice is often poor and information is, in many cases, deficient or difficult to understand.
By a decision made on May 12th 2014, Finansinspektionen has decided that Reinhold Europe AB (formerly Reinhold Polska AB) shall pay a penalty fee of SEK 1 500 000 for the failure to publish periodic financial information.
On 3 April, the Government presented a bill regarding strengthened capital adequacy rules.
A smoothly functioning credit market is fundamental to the ability of modest-wealth households to purchase a home. However, high indebtedness carries a risk for individual households, and can pose a risk to financial stability. It is therefore important for Finansinspektionen (FI) to monitor developments in household indebtedness.
Finansinspektionen's and The Riksbank's joint internal audit has assessed the supervision and oversight of the financial infrastructures in Sweden on the basis of the "Principles for financial market infrastructures” (PFMIs) which Finansinspektionen use in its supervision and The Riksbank in its oversight.
Finansinspektionen grants Nasdaq OMX Clearing authorisation to act as a central counterparty in accordance with the EU’s regulation regarding OTC derivatives, central counterparties and transaction registers (EMIR).
FI is expanding and strengthening its organisation with a new position. As of 1 February, Martin Noréus is Deputy Director General.
Finansinspektionen withdraws the authorisation to conduct financing business of Exchange Finans Europe.
Finansinspektionen withdraws the authorisation of Festival International to conduct investment services.
In this report, Finansinspektionen (FI) describes the banks' adaptations to higher capital requirements and the effects on households and non-financial firms.
Swedish banks are relatively strong, but they continue to be vulnerable to disruptions on the financial markets, and the development within the Euro zone continues to represent a risk to the Swedish financial system.
The development of the margins of new mortgages slowed during Q1 2013. Both the banks' funding cost and households' lending rate for new mortgages continued to fall during the quarter.
Many of the development trends in today’s financial markets raise important issues for FI. For consumers, greater mobility and increasingly complex financial products represent not only more opportunities but also higher risks. FI needs to bring attention to these risks and resolve them.
FI is implementing a risk weight floor of 15 per cent for Swedish mortgages. The floor will be implemented as a supervisory measure within Pillar 2.
Macroprudential supervision is not a new concept; it has always been a part of traditional supervision work. This statement was part of Martin Andersson's speech at the Bank & Finans Outlook conference on March 20.
This report is based on Finansinspektionen's (FI's) third large mortgage survey. The survey is based on comprehensive material from the eight largest banks in Sweden.
Finansinspektionen finds that guidelines from the European supervisory authorities addressed to competent authorities or financial market participants are equivalent to Swedish general guidelines.
Both the banks' funding cost and lending rates to households and corporations fell sharply during the fourth quarter of 2012 while the banks' margins on new mortgages increased slightly. Lending to Swedish corporations and households increased during the fourth quarter, but at a slower rate than before. During 2013 Finansinspektionen (FI) will investigate potential measures for how credit institutions can increase the awareness of their customers for how the actual lending rates for mortgages are determined.
Swedish banks have already largely adapted to the forthcoming requirements regarding capital adequacy and access to liquidity. The stricter requirements involve a cost, but also help improve stability in the financial system. On the whole, the forthcoming requirements will generate positive effects for the national economy.
Finansinspektionen’s (FI’s) 2012 risk report 2012 continues to focus on unease on financial markets, where the greatest risk to the Swedish financial system is still a deepened sovereign debt crisis in Europe. Because of low market rates, life insurance undertakings are under pressure, and FI now sees a risk of consumers ending up in a squeeze as the firms review their commitments. This year too, FI views the financial advice market with concern. In this market, consumers are being invited to invest in complex products while advisors receive commissions.
The growth rate of lending to households and corporations is decreasing, but remains positive and is clearly higher than the corresponding figure for the eurozone. Banks' margins on mortgages increased in the same period, according to the second quarterly report.
The issues presented in this year’s Supervision Report stem from the work on financial consumer protection, financial stability and the requirements on company owners and management. In addition, the report discusses the increased international work, primarily within the EU.
During 2011, Finansinspektionen (FI) investigated how 11 financial companies market risks management. ‘Market risk’ refers to the risk of loss-incurring value changes in assets and liabilities due to fluctuations in interest rates, foreign exchange rates, stock prices and commodity prices.
In order to strengthen financial stability and avoid future financial crises, new regulations for the banking sector are being prepared. The regulations include higher capital adequacy requirements.
Loan-to-value ratios decreased for the first time in 10 years and the share of households with new loans over 85 percent has fallen by fifty per cent since 2009. These are some of the findings in Finansinspektionen’s follow-up of the mortgage cap.
High frequency trading contributes to – but is not responsible for – changes in trading. But there is still considerable concern that market abuse has increased and supervision is insufficient. These are the main conclusions from Finansinspektionen’s investigation.
Sweden has remained relatively stable in a turbulent period but during this time the risk level in the Swedish financial system has also risen. The uncertainty in surrounding markets has meant that banks’ liquidity risks and the impact of low interest rates on life insurance undertakings remain in focus. Finansinspektionen also believes there is a risk that the sale of complex products to consumers will increase.
Finansinspektionen (FI) received an assignment from the Government to report on the implementation of the EU Recommendation on remuneration in the financial services sector, the measures taken to ensure compliance with the new rules and how affected companies have adapted to the recommendations.
Finansinspektionen's annual Supervision Report discusses areas in which fundamental issues with regard to supervision and regulatory development have risen to the forefront and in turn have resulted in new lessons and conclusions.
Finansinspektionen believes the risk level in the Swedish financial sector is lower than last year. Both Sweden’s economy and the situation on the financial market have improved. However, the uncertainty present in foreign markets represents a potential threat to Sweden’s development.
FI's annual Supervision Report describes the lessons learned from the financial crisis as well as more general issues regarding consumer protection.