Aggregated News From Investment Management Regulators

Decision by FI’s Board of Directors: the countercyclical buffer rate is lowered to zero

Report/Flag

Please complete the required fields.




During an extraordinary meeting today, Monday, 16 March, FI’s Board of Directors decided to adopt a countercyclical buffer rate of 0 per cent in accordance with the proposal presented on Friday, 13 March 2020.

The spread of the coronavirus disease is sending economic shocks throughout the world and Sweden. It is important to safeguard a well-functioning supply of credit when the economy is hit by shocks. Firms and households may need to take out loans to maintain production, investments and consumption.

Finansinspektionen (FI) therefore is lowering the countercyclical buffer rate by 2.5 percentage points and setting it at 0 per cent. The measure is being taken pre-emptively to avoid a credit crunch due to recent developments surrounding the coronavirus disease and the spread of COVID-19 and their impact on the economy. The new buffer rate will be applied as of 16 March 2020. FI does not expect to change the new buffer rate for at least the next twelve months. This means that any subsequent increases will not be expected to go into effect earlier than March 2022.

The buffer rate will be lowered by amending Finansinspektionen’s regulations (FFFS 2014:33) regarding the countercyclical buffer rate. The amendment will enter into force immediately.

Regulator Information

Abbreviation: FI
Jurisdiction: Sweden

Recent Articles

Feedback Statement on Funding Financial Regulation and Designated Business Oversight

Published on: 14 May 2021 The Isle of Man Financial Services Authority has today published a Read more

Solid Invest

We believe this firm may be providing financial services or products in the UK without our authorisation. Find out why you should be wary...

Vision Introducer Ltd t/a Money Bonds Market (Clone of former Appointed Representative firm)

Fraudsters are using the details of firms we authorise to try to convince people that they work for a genuine, authorised firm. Find out...

CSA and IIROC issue reminder of the implementation date for mandatory transparency requirements related to debt securities

The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) remind banks of mandatory transparency requirements that take effect on...

Get the latest from Regulatory.News in your inbox!

×