FI Updates Capital Buffer and Reporting Requirements for Banks
The Swedish Financial Supervisory Authority (FI) decided to raise countercyclical buffer rate to 2%, imposed an extra capital buffer requirement on Nordea Hypotek AB, and announced that reporting for the "standard report" and the interest rate risk report shall take place in Fidac reporting system.
Below are the key highlights of the recent updates:
- FI recently decided to raise the countercyclical buffer rate to its neutral level of 2%. Due to the implementation period of twelve months, the new buffer rate will enter into force on June 22, 2023. This increase completes the authority's gradual increase of the buffer rate to the neutral level, which began in September 2021. FI had earlier communicated the intent to increase the buffer rate to 2% in its financial stability report, which was published in May 2022.
- FI decided to impose an extra capital buffer requirement on Nordea Hypotek AB. In particular, Nordea Hypotek AB shall hold a capital buffer for other systemically important institutions (O-SIIs). The capital buffer shall consist of common equity tier (CET1) capital and amount to 1% of Nordea Hypotek AB's total risk-weighted exposure amount. The requirement to hold this capital buffer applies from December 30, 2022. This decision may be revoked at a later date if FI makes a new assessment of Nordea Hypotek AB's status as an O-SII or the size of the capital buffer.
- FI announced the reporting of the "standard report" and the interest rate risk report shall take place in Fidac instead of in the Periodic reporting system from the reference date of September 30, 2022. This reporting must be done by either manually entering data in a web-based form or by uploading a “Json file.” The “Json file” will be created according to the Json schedule that will be published at the end of August. FI also specified that test reporting will be available from September 01, 2022 and remain available throughout the reporting period.
Related Links (in English and Swedish)
- Press Release on CCyB Rate
- Decision on CCyB Rate (PDF)
- Press Release on Reporting in Fidac
- Press Release on Nordea Hypotek AB
- Decision on Nordea Hypotek AB (PDF)
Keywords: Europe, Sweden, Banking, Reporting, CCyB, Interest Rate Risk, Regulatory Capital, FIDAC, O-SII Buffer, Nordea Bank, Basel, FI
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