Opinions from the ESRB and the EBA regarding changed method for application of the risk weight floor for Swedish mortgages

The ESRB and the EBA have submitted their Opinions to the European Council, the European Commission and Finansinspektionen regarding Finansinspektionen's intention to change its method for the application of the current risk weight floor for Swedish mortgages.

Finansinspektionen published a consultation memorandum on 28 March 2018 entitled Changed method for the application of the risk weight floor for Swedish mortgages. The memorandum proposes 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.

Finansinspektionen notified the European Parliament, the European Council, the European Commission, the ESRB and the EBA about the proposed measure under Article 458 of the CRR on 24 May 2018 (EU Notification). The ESRB and the EBA have now submitted their statements to the Council, the Commission and Finansinspektionen.

Both authorities support Finansinspektionen's assessment of the risks associated with Swedish mortgages and do not object to Finansinspektionen's proposed measure.

Finansinspektionen is now waiting for a decision from the Commission about whether the measure may be introduced in Sweden.

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