Capital requirements

The Pillar 1 minimum requirement amounts to eight percent of the total risk exposure amount and it must be covered by at least 75 percent Tier 1 capital, whereof at least 75 percent must be Common Equity Tier 1 (CET 1) capital.

FI decides on Pillar 2 requirements in connection with our supervisory review and evaluation of the institutions. In support of the decision, FI uses a number of methods that disclose how we assess and calculate the requirement for specific risks. FI can also decide on Pillar 2 requirements based on other assessments that we make. Pillar 2 requirements shall be covered by at least 75 percent Tier 1 capital, of which at least 75 percent must be CET 1 capital. However, FI can decide on a higher proportion of Tier 1 capital or CET 1 capital.

FI's approaches

Updated Pillar 2 method for assessing flowback risk associated with securitisation (2021-07-13)

Uppdaterad metod för att bedöma särskilt kapitalbaskrav för marknadsrisker utanför handelslagret (Om Swedish) 2024-06-28

FI presents new Pillar 2 method for pension risk in credit institutions (2022-06-03)

Pillar 2 method for assessing additional own funds requirement for credit-related concentration risk (In Swedish)  (2020-12-29)

Systemic risk buffer

FI has introduced a systemic risk buffer of three percent of the total risk-weighted exposure amount that applies to the three major Swedish banks. The buffer must be covered by CET 1 capital. FI may also reciprocate systemic risk buffers implemented by other countries, which can lead to a buffer that exceeds three percent.

Buffer for other systemically important institutes (O-SII-buffer)

The O-SII buffer amounts to one percent of the total risk-weighted exposure amount for the three major Swedish banks and Nordea Hypotek AB. The buffer must be covered by CET 1 capital.

Countercyclical capital buffer

The Swedish countercyclical buffer value is currently set at two percent. The buffer value that the banks report is an average value, weighted by the risk exposure amount, of the countercyclical buffer values applied in countries where the company has exposures. The countercyclical capital buffer must be covered by CET 1 capital.

Capital conservation buffer

The capital conservation buffer amounts to 2.5 percent of the total risk weighted exposure amount and must be covered by CET 1 capital.

FI notifies the companies a risk-based guidance in connection with our supervisory review and evaluation process. The guidance is not a formally decided requirement. The guidance must be covered by CET 1 capital.

Updated approach to assessing Pillar 2 guidance for Swedish banks (2023-05-31) 

Risk weight floors for bank loans to commercial properties (In Swedish) (2023-09-13)

FI extends the risk weight floor for Swedish mortgage exposures
(2023-12-14)

The minimum requirement for the leverage ratio amounts to three percent of the leverage ratio exposure amount and must be covered by Tier 1 capital.

FI can decide on a Pillar 2 requirement in a similar way as for the risk-based requirement. The Pillar 2 requirement must be covered by Tier 1 capital unless we decide otherwise.

FI notifies the companies a leverage ratio guidance in connection with our supervisory review and evaluation process. The guidance is not a formally decided requirement. The guidance must be covered by CET 1 capital.