Featured Product

    FI to Ease Restrictions on Dividend Payments, Increase CCyB

    September 29, 2021

    The Swedish Financial Supervisory Authority (FI) has decided not to extend the recommendation on restrictions on dividend payments and share repurchases by banks, as the Swedish economy is in a clear recovery phase. The recommendation expires on September 30, 2021. This means that FI returns to the normal supervisory process for assessing the risks and capital requirements of banks. Additionally, FI has decided to increase the countercyclical capital buffer, or CCyB, value from 0% to 1% from September 29, 2022.

    FI had reduced the countercyclical buffer value from 2.5% to 0% in March 2020, due to the economic uncertainty associated with the outbreak of the COVID-19 pandemic. FI has decided to increase the CCyB buffer since the situation continues to improve and the risks of large credit losses at banks have decreased. In addition, the rise in asset prices and housing prices, together with rising household debt, point to increased risks in the financial system, thus indicating a need for capital buffers. An implementation period of 12 months means that the new value will begin to be applied on September 29, 2022. FI aims to gradually increase the buffer value to 2% in 2022 if the economic recovery continues, credit losses are low, and banks can meet the demand for credit. If the risks associated with asset markets and indebtedness remain, FI may subsequently increase the buffer value even further. Additionally, a new decision-making procedure will be introduced from now on for the CCyB, resulting in the repeal of the regulations on countercyclical buffer value and replacing them with special decisions.

     

    Related Links

    Keywords: Europe, Finland, Banking, CCyB, Regulatory Capital, Dividend Distribution, Basel, COVID-19, Macro-Prudential Policy, FI

    Featured Experts
    Related Articles
    News

    APRA Penalizes Heritage Bank for Incorrect Reporting of Capital

    The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Releases Annual Report 2021-2022

    The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.

    November 29, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance on Management of Climate Change Risks

    The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.

    November 26, 2021 WebPage Regulatory News
    News

    EBA Publishes Single Rulebook Q&A Updates in November 2021

    The European Banking Authority (EBA) Single Rulebook Question and Answer (Q&A) tool updates for this month include answers to 10 questions.

    November 26, 2021 WebPage Regulatory News
    News

    EC Proposes New Measures Under Capital Markets Union Package

    The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.

    November 25, 2021 WebPage Regulatory News
    News

    European Council Adopts Position on Digital Finance Package Proposals

    The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).

    November 25, 2021 WebPage Regulatory News
    News

    PRA Proposes Rulebook Changes; BoE Extends BEEDS Testing Window

    The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.

    November 25, 2021 WebPage Regulatory News
    News

    FED Outlines Lending Conditions and Supervisory Activities in H1 2021

    The Board of Governors of the Federal Reserve System (FED) published a report that summarizes banking conditions in the United States, along with the supervisory and regulatory activities of FED.

    November 24, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards to Calculate Risk-Weights of CIUs Under CRR

    The European Banking Authority (EBA) published the final report on draft regulatory technical standards for the calculation of risk-weighted exposure amounts of collective investment undertakings or CIUs, in line with the Capital Requirements Regulation (CRR).

    November 24, 2021 WebPage Regulatory News
    News

    APRA Expects Boards to Strengthen Ability to Oversee Cyber Resilience

    The Australian Prudential Regulation Authority (APRA) recently completed two pilot initiatives in its 2020-2024 Cyber Security Strategy, which was published in November 2020.

    November 23, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7736