The Swedish Financial Supervisory Authority (Finansinspektionen) has published the calibration it will apply to the sensitivity-based stress test that underpins Pillar 2 Guidance for Swedish banks in 2025. Pillar 2 Guidance is communicated to an institution as part of the supervisory review and evaluation process and is set using a sensitivity-based stress test estimating the potential fall in a bank’s capital ratio under specified assumptions and methodological choices. For the net interest income component, the authority will use the outcome from banks’ supervisory outlier test (SOT) as the input for stressing net interest income, and it flags that banks should review and, if necessary, correct the related COREP reporting. The calibration applies from 28 March 2025, with further detail provided in an accompanying annex.
Finansinspektionen 2025-03-28
Swedish Financial Supervisory Authority publishes 2025 calibration for the Pillar 2 Guidance sensitivity-based stress test
Finansinspektionen has published the calibration for the sensitivity-based stress test underpinning Pillar 2 Guidance for Swedish banks in 2025. The stress test estimates potential capital ratio declines under specified assumptions, using banks' supervisory outlier test outcomes for net interest income stress. Banks are advised to review and correct related COREP reporting as necessary.