The Swedish Financial Supervisory Authority (Finansinspektionen, FI) has published the capital requirements for Swedish banks and credit institutions in supervisory categories 1 and 2 as at the end of the fourth quarter of 2024. The publication is intended to clarify the effect of FI’s capital requirements, including Pillar 2, which covers firms’ internal capital assessment and FI’s supervisory review and evaluation process. Starting with Q4 2024, FI also begins publishing what it calls “actual Common Equity Tier 1 (CET1) headroom”, defined as the amount in SEK, expressed as a percentage of risk-weighted exposure amount (REA), where the headroom between a bank’s available capital and eligible liabilities and the regulatory requirement plus Pillar 2 guidance is smallest. The disclosure covers Handelsbanken, SEB, Swedbank, Länsförsäkringar, Klarna, Kommuninvest, Svenskt Exportkredit (SEK), SBAB, Avanza and Nordnet.
Finansinspektionen 2025-02-28
Swedish Financial Supervisory Authority publishes Q4 2024 capital requirements and introduces reporting of banks’ actual CET1 headroom
The Swedish Financial Supervisory Authority (Finansinspektionen, FI) has published capital requirements for Swedish banks and credit institutions in supervisory categories 1 and 2 as of Q4 2024, clarifying the impact of FI’s capital requirements, including Pillar 2. FI also begins disclosing "actual Common Equity Tier 1 (CET1) headroom" for major institutions, indicating the smallest headroom between available capital and regulatory requirements plus Pillar 2 guidance.