Featured Product

    FI Issues Regulatory Updates for Banks and Investment Firms

    June 28, 2021

    The Swedish Financial Supervisory Authority (FI) has updated validation rules for reporting according to the EBA taxonomy via the new reporting system Fidac. Also updated was the list of deactivated EBA validation rules for periodic reporting via Fidac for banks and investment firms. FI has decided to reciprocate the decision of the Norwegian Ministry of Finance to implement an average risk-weight floor of 20% for retail exposures and of 35% for corporate exposures collateralized by real estate in Norway; the decision shall apply from September 30, 2021 until December 31, 2022.

    The decision is applicable for Swedish credit institutions that have branches or other exposures in Norway and are authorized to use an internal ratings-based approach for the calculation of their capital requirement for credit risks. FI will apply the threshold of NOK 32.3 billion for retail exposures collateralized by real estate and NOK 6.7 billion for corporate exposures collateralized by real estate, as stated by the Norwegian Ministry of Finance. Given the measures being decided now, the existing Pillar 2 add-on for Norwegian mortgages that was previously communicated in a memorandum will no longer be applied by FI as of September 30, 2021. FI is postponing its decision on reciprocating the Norwegian systemic risk buffer of 4.5% for Norwegian exposures until more information is available on how the fifth Capital Requirements Directive (CRD5) will be implemented in Norway. 

    Finally, FI issued a statement on classification of small and non-complex institutions. The amendments to the Capital Requirements Regulation (CRR) that certain credit institutions and securities companies may be classified as small and non-complex institutions came into effect on June 28, 2021. A company that wants to be classified as a small and non-complex institution must submit a report to FI, wherein the company must state how it fulfills the required conditions in CRR. FI may make a different assessment of the classification if an analysis of the size, connections, complexity. or risk profile shows that the company cannot be considered as such an institution. A small and non-complex institution may be authorized to apply a simplified calculation of the net stable funding ratio (NSFR). An undertaking wishing to apply simplified NSFR is required to submit a separate application for authorization under Article 428a of CRR. It is the company's responsibility to continuously ensure that it meets the conditions for classification as a small and non-complex institution. The company must inform FI if it no longer meets these conditions.


    Related Links (in Swedish)

    Effective Date: September 30, 2021 (Risk-Weight Decision)

    Keywords: Europe, Sweden, Banking, Securities, Investment Firms, Reporting, Validation Rules, FIDAC, Norway, Risk Weight Floor, Internal Ratings Based Approach, Regulatory Capital, CRR, CRD5, Basel, Small Banks, NSFR, Proportionality, FI

    Featured Experts
    Related Articles

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory 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

    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

    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

    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

    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

    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

    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

    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
    RESULTS 1 - 10 OF 8699