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

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697