Major Swedish banks should have more high-quality capital than what is required by the new Basel regulations. Finansinspektionen, the Swedish Ministry of Finance and the Riksbank are publishing today proposals for new minimum requirements.
The crisis of recent years has shown just how large the economic costs can be when the banking sector experiences problems. Therefore, a large international project is underway to develop new rules for how much capital banks should have in the future. The international Basel Committee on Banking Supervision has produced a number of recommendations, which are called Basel 3.
Finansinspektionen, the Swedish Ministry of Finance and the Riksbank are proposing higher requirements on major Swedish banks than what the new Basel regulations stipulate. The aim is to create banks that are more stable; this is the best way to prevent future crises and thereby decrease the risks for Swedish taxpayers.
The common equity Tier 1 capital of the four major banks – Handelsbanken, Nordea, SEB and Swedbank – should be at least 10 per cent as of 1 January 2013 and 12 per cent as of 1 January 2015. These thresholds include, like Basel 3, a capital conservation buffer of 2.5 per cent, but not a countercyclical buffer.
The major Swedish banks are well-capitalised and are already close to these levels today. They are therefore in a good position to be able to meet the new capital adequacy requirements.
Press conference
A more detailed presentation will be held by Peter Norman, Minister for Financial Markets, and State Secretary Johanna Lybeck Lilja at a press conference at 11:00 a.m. today at Rosenbad Press Centre. Martin Andersson, Director General of Finansinspektionen, and Mattias Persson, Sveriges Riksbank, will also participate in the press conference.
