The Swedish Financial Supervisory Authority (Finansinspektionen, FI) has begun publishing banks’ actual Common Equity Tier 1 (CET1) headroom on a quarterly basis, starting alongside its “Capital requirements for Swedish banks, Q4 2024” release. The metric is intended to show how much of a bank’s CET1 buffer can be used to absorb losses before it would breach a regulatory requirement or Pillar 2 guidance. Actual CET1 headroom is presented as an amount in SEK and as a percentage of the bank’s risk-weighted exposure amount (REA), and is defined as the smallest margin between the bank’s available capital and eligible liabilities and the combined regulatory requirement and Pillar 2 guidance. The publication covers Handelsbanken, SEB and Swedbank as well as Länsförsäkringar, Klarna, Kommuninvest, Svenskt Exportkredit (SEK), SBAB, Avanza and Nordnet, with the calculation method set out in an accompanying memorandum.
Finansinspektionen 2025-02-28
Swedish Financial Supervisory Authority begins quarterly publication of banks’ actual CET1 capital headroom
The Swedish Financial Supervisory Authority (Finansinspektionen, FI) has begun publishing banks' actual Common Equity Tier 1 (CET1) headroom quarterly, starting with the "Capital requirements for Swedish banks, Q4 2024" report. This metric shows the CET1 buffer available to absorb losses before breaching regulatory requirements or Pillar 2 guidance. The publication includes data for major banks like Handelsbanken, SEB, and Swedbank, with details in an accompanying memorandum.