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'Swedish banks should have more capital than required by Basel III'  

March 21, 2014
The Swedish Wire

The regulatory frameworks that are now being finalised internationally and introduced in Sweden and abroad will increase the safety margins in the financial system. The Basel III framework, in particular, will reduce just those risks and problems that Swedish authorities have identified in the Swedish banks. Nevertheless, in Sweden's case the measures are not enough. This was pointed out by Stefan Ingves today when he spoke at Affärsvärldens Bank & Finans Outlook at Berns in Stockholm.

As chairman of the Basel Committee, he has a large responsibility for finalising the Basel III regulatory framework that is that part of the international reform agenda that followed in the wake of the crisis and that affects banks all over the world.

Although the Basel III framework provides a solid foundation, it only comprises minimum requirements that are not able to manage all the risks in the Swedish financial system. According to Mr Ingves, there are specific circumstances in Sweden, special structural vulnerabilities, that more than justify continuing to set stricter requirements for the Swedish banks.

Read more: The Swedish Wire

 
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