A stable, well-functioning financial market for allA stable, well-functioning financial market for allFI extends the risk weight floor for Swedish mortgage exposures
FI has decided to extend the risk weight floor by two years, from 31 December 2023 to 30 December 2025.
FI assesses that the risks posed by high residential real estate prices and high household indebtedness – which were the original motivation behind introducing the measure – have remained largely the same and that the measure is still needed.
The decision applies to the firms that apply the internal ratings-based (IRB) approach to calculating risk-weighted exposure amounts for credit risk and that issue mortgages in Sweden.
On 12 September 2023, FI, through Article 458 of the Capital Requirements Regulation, informed the European Commission and the European Systemic Risk Board (ESRB) of FI's intention to extend the current risk-weight floor of 25 per cent for Swedish mortgages. The European Commission approved FI's proposed measure on 6 November 2023.
