Aggregated News From Investment Management Regulators

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


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

Proposed Rule Change to Amend FINRA Rule 2231 (Customer Account Statements)

Financial Industry Regulatory Authority, Inc.

Revision of Recommendation 25 – White Paper for Public Consultation

The Financial Action Task Force (FATF) is conducting a review of Recommendation 25 (R.25) on the transparency and beneficial ownership (BO) of legal arrangements....

ASIC warns super trustees to be transparent in their underperformance communications to members

ASIC today released the findings from its review of superannuation trustees’ communications with their members following the first annual performance test for MySuper products. The...

EBA replies to European  Commission’s call for advice on the Mortgage Credit Directive review

The European Banking Authority (EBA) published today an Opinion and Report in response to the European Commission’s Call for Advice (CfA) on the review of the Mortgage Credit Directive (MCD) .

Get the latest from Regulatory.News in your inbox!