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

Warning regarding the activities of an entity named Pinecone Tokenised Fund

The Commission de Surveillance du Secteur Financier (CSSF) warns the public of the activities of an entity named Pinecone Tokenised Fund which pretends to...

Deferred tax assets require recognition test

Insurers have to take account of deferred taxes when they prepare their Solvency II balance sheet.

Remittance Advice- B G Freight Shoppe India P Ltd. in the matter of Ram Minerals and Chemicals Ltd.

This news item was originally published by the Securities and Exchange Board of India (SEBI IN). See the article here: Read more

Get the latest from Regulatory.News in your inbox!