Featured Product

    Swedish Government Proposes Changes to Crisis Management Rules

    February 18, 2021

    The Swedish National Debt Office (SNDO) issued clarifications on the Swedish government's proposed revisions to the regulations for managing financial firms in crisis. The proposal was referred to the Council on Legislation for consideration by the Swedish government. The referral to the Council on Legislation contains proposals on how parts of the EU banking package are to be transposed into Swedish law. The referral pertains to parts of the banking package that concern resolution and the Minimum Requirement for Own Funds and Eligible Liabilities (MREL). The changes are proposed to enter into force on July 01, 2021.

    At this juncture, SNDO clarified how certain regulatory changes will affect the its work in the near future. The referral states that the decisions of SNDO on MREL requirements in accordance with the new regulations shall apply as of January 01, 2024. To enable a linear build-up to the requirements that are to be met in 2024, SNDO must also determine intermediate target levels that will apply until then. Until decisions in accordance with the new regulations have been made, the MREL requirements that have been set under the current regulations will apply. As a result of these proposals in the referral, SNDO intends to make new decisions on MREL requirements in accordance with the regular cycle for resolution planning—that is, in December 2021. For Swedish banks that are subsidiaries of foreign groups, the time of decision may deviate from this.

    When SNDO makes new decisions, the previous requirements will be replaced by a target level, which will apply as of January 01, 2022, as well as by a requirement that will apply as of January 01, 2024. SNDO intends to, in good time before December, revert with an updated memorandum on the application of MREL describing in further detail how these requirements will be determined. The target levels will be decided taking into account the banks’ current requirements and compliance, to enable a linear build-up until January 01, 2024. SNDO also mentioned that it will, during the Spring, present a referral for consideration with proposals for regulations, so that these can come into force as the same time as the new legislative proposal.

     

    Effective Date: July 01, 2021 (Proposed)

    Keywords: Europe, Sweden, Banking, MREL, Resolution Framework, Banking Package, Resolution Planning, Crisis Management Framework, Bail-In, Regulatory Capital, Basel, SNDO

    Featured Experts
    Related Articles
    News

    EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    EBA Updates Lists of Entities for Use in Capital Calculations under SA

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    MAS Amends Notice on Related Party Transactions of Banks

    MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.

    April 08, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Euro Short-Term Rate

    ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.

    April 07, 2021 WebPage Regulatory News
    News

    EBA Consults on Standards Related to FRTB-SA

    EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).

    April 07, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules Related to IRB Approach for Credit Risk

    PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.

    April 07, 2021 WebPage Regulatory News
    News

    BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK

    The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks

    FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks

    OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.

    April 06, 2021 WebPage Regulatory News
    News

    EU Amends CRR and Securitization Regulation in Response to Pandemic

    To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).

    April 06, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6826