Finansinspektionen (FI) does not consider it to be appropriate to grant banks waivers from the Basel 1 floor. This issue has come up for discussion as a result of the new pending European regulations. FI would now like to receive feedback about this position.
On 1 January 2014, the new European Capital Requirements Regulation will go into effect. As part of the new regulations, FI may grant banks waivers from the Basel 1 floor. In order to maintain confidence in the Swedish banking system’s capital strength, FI believes that it is not appropriate to grant such waivers.
The new buffer requirements in Basel 3, including the systemic risk buffers for the major Swedish banks, will be calculated without taking the floor rules into account. The floor is only a parallel back-stop for the lowest level of own funds and therefore does not constitute a deviattion from the previously announced November Accord.
FI’s position does not entail a change with regard to the floor compared to the current regulations. However, FI would like to receive feedback about FI’s intention not to grant waivers. The final day to submit feedback to FI is 27 January 2014.