Finansinspektionen has notified the European Parliament, the EU Council, the European Commission, the ESRB and EBA on the intended measure to change the method for the application of the risk weight floor for Swedish mortgages under Article 458 of the CRR.
Finansinspektionen published the consultation memorandum Changed method for the application of the risk weight floor for Swedish mortgages (FI Ref. 18-6251) on 28 March 2018. The proposal entails an average risk weight floor of 25 per cent for Swedish mortgages within the framework of Article 458 of the CRR for credit institutions that have permission to use the IRB approach and have an exposure to Swedish mortgages.
The proposal has been sent for referral to a number of consultation bodies, including the Riksbank, Swedish National Debt Office, Swedish Savings Banks Association and Swedish Bankers' Association. The consultation period ended on 30 April 2018. During the drafting of the proposal, Finansinspektionen also pursued, through an external reference group and bilateral meetings, a dialogue with the Swedish Bankers' Association and the Swedish Savings Banks Association as well as a number of the credit institutions concerned.
Finansinspektionen has now notified the European Parliament, the EU Council, the European Commission, the ESRB and EBA on the intended measure under Article 458 of the CRR (EU Notification). In addition, the relevant credit institutions are given the opportunity to comment on the EU notification. Finansinspektionen awaits now the response from the EU bodies.