Swedish debt office loosens MREL requirements for banks

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By David Freitas
07 Apr 2020

The Swedish national debt office (Riksgälden) said on Tuesday that banks would have two extra years to raise non-preferred senior debt for their minimum requirements for own funds and eligible liabilities (MREL). The announcement came a day after Svenska Handelsbanken sold an ordinary senior deal in the euro market.

The Riksgälden is expected to demand full subordination for MREL, meaning that Swedish banks will only be able to use junior debt instruments like capital securities and non-preferred senior bonds to count towards their requirements.

It had originally said that financial institutions would need to meet this subordination target ...

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