Swedish supervisor extends risk flooring to preserve bank capital

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By David Freitas
17 Sep 2020

Sweden's financial supervisor has extended its application of a risk weight floor on domestic mortgages, a measure that will help to protect senior debt by forcing banks to run with higher capital positions.

Finansinspektionen, the Swedish financial supervisory authority, said on Wednesday that it had decided to keep its 25% risk weight floor on Swedish mortgages in place for an extra year.

The decision, the Swedish FSA said, will help to guard against losses on residential real estate exposures, which tend ...

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