During the autumn, the European Commission will publish a proposal for updated capital adequacy rules for banks within the EU. Finansinspektionen (FI) now urges the EU Commission to stick to the Basel III agreement.
FI is proposing regulatory amendments and a change in the application of capital requirements for Swedish banks in order to adapt to the EU’s so-called banking package.
In relation to the report published by the European Banking Authority (EBA) in August Finansinspektionen would like to make the following clarification on the impact for Swedish banks of the revised Basel standards. According to Finansinspektionen’s calculation, the increase in tier 1 minimum required capital would be about 30 per cent instead of 53 per cent as shown in the report from the EBA (keeping the assumptions and methodology set by EBA, but taking into account the current Swedish mortgage floor for the current risk-weighted assets).
“The Swedish banking sector is profitable and has satisfactory resilience, but it is clearly undergoing a major transformation,” said Martin Noréus in a speech at SvD Bank Summit in Stockholm.
The oversight body of the Basel Committee, GHOS (Governors and Heads of Supervision), has agreed today after several years of work on key supplements to complete the global standards for banks’ capital adequacy. Finansinspektionen (FI) is a member of the Basel Committee and has participated in this project.
Erik Thedéen visited the Committee on Finance today for a Q&A session. He discussed the unprecedented economic conditions that Sweden is currently experiencing.