Riksbank Governor Thedéen backs simpler bank regulation without lower capital levels or liquidity buffers

In remarks at Finance Sweden’s banking conference, Riksbank Governor Erik Thedéen supported simplifying bank regulation while preserving capital levels and liquidity buffers. Future reforms should place greater emphasis on core Tier 1 capital and make the system of parallel capital requirements more transparent. He credited the higher capital and liquidity requirements introduced under Basel III with enabling banks to maintain lending during the pandemic. Growing activity outside the banking system and developments in artificial intelligence make future risks harder to assess, reinforcing his argument against weakening banks’ resilience. Thedéen also called for compliance with global minimum banking standards, including by the European Union, and urged Sweden’s financial industry to continue moving toward reference rates based on actual transactions, such as the Swedish krona Short Term Rate (SWESTR). The Riksbank consolidated SWESTR’s governing rules in June 2025 without materially changing its calculation or administration. His remarks concerned continued market adoption rather than a new benchmark framework. Separately, Thedéen noted that October’s preliminary consumer price inflation reading was significantly below the Riksbank’s September forecast, while cautioning that individual monthly readings can vary. Another inflation reading and further information on domestic and international developments will inform the next monetary policy decision in mid-December.