FI Retains Systemic Risk Buffer at 3%, Imposes Compliance Penalty
The Swedish Financial Supervisory Authority (FI) recently reviewed the systemic risk buffer and decided to keep the buffer for the three major" banks—SEB, Handelsbanken, and Swedbank—at 3%. FI reviews the systemic risk buffer every two years, with the previous review being on December 29, 2020 when it was decided that these banks must maintain a systemic risk buffer of 3% at the group level. FI also imposed an administrative penalty of SEK 90.0 million on Länsförsäkringar Bank. FI found Länsförsäkringar Bank to be deficient in its compliance with the anti-money laundering regulations, as it failed to validate its model for transaction monitoring and has not had certain procedures and guidelines in place.
Related Links (in Swedish)
- Press Release on Systemic Risk Buffer
- Systemic Risk Buffer Review Document (PDF)
- Penalty on Länsförsäkringar Bank
Keywords: Europe, Sweden, Banking, Systemic Risk Buffer, Basel, Regulatory Capital, AML CFT, Governance, Compliance Risk, FI
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