Regulatory Watch
NFC continuously monitors the regulatory landscape and supports banks and credit market companies by analysing regulatory developments that affect their business. Below is an extract of the main banking regulatory news from the past quarter.
Top 3 Banking Regulatory News for Q1 2025
- Consultation paper: Strengthening consumer protection in the credit market
The Government has submitted a consultation paper proposing that only banks may grant or mediate consumer credit. The proposal aims to counteract unfair lending practices and protect consumers from over-indebtedness. Consumer credit institutions are companies that provide consumer credit and have lower capital and organisational requirements than banks. Consumer credit institutions' loans differ from those of banks in several respects. For the most part, they have significantly higher interest rates than those offered by banks. The borrowers of consumer credit institutions are to a large extent young people with low incomes. These borrowers are also much more likely than bank borrowers to receive payment reminders, collection demands and debts with the Swedish Enforcement Authority. The amendments are proposed to enter into force on 1 July 2025. Consumer credit institutions that were authorised before 1 July 2025 may continue their consumer credit activities until the end of July 2026. If such an undertaking has submitted an application for a banking or financing licence to Finansinspektionen before the end of July 2026, its consumer credit activities may continue until the application has been finally assessed.
Read more: https://www.regeringen.se/rattsliga-dokument/lagradsremiss/2025/01/starkt-konsumentskydd-pa-kreditmarknaden/
- Stress test calibration for Pillar 2 guidance 2025
Finansinspektionen has reported the calibration that will be applied in 2025 for the sensitivity-based stress test that forms the basis for the Pillar 2 guidance for Swedish banks. The main change in the calibration from previous years is that net interest income is stressed by scaling the outcome of the banks' Supervisory Outlier Test (SOT) for NII and stressing the interest margin on wholesale funding. The result is subject to a floor of 5% and a ceiling of 30% of the historical three-year average of the bank's net interest income. This differs significantly from the methodology applied in previous years where a stress of 30% of the historical three-year average of the bank's net interest income has been used. The methodology will be more tailored to the sensitivity of each bank's net interest income. The calibration is applied from 28 March 2025.
Read more: https://www.fi.se/sv/publicerat/nyheter/2025/kalibrering-av-stresstest-for-pelare-2-vagledning-2025/
- Notification of securitisation with significant risk transfer (SRT)
Finansinspektionen has clarified the requirements for notification of securitisations with significant risk transfer. Previously, Finansinspektionen stated that the originator should provide certain information for the assessment of significant credit risk transfer in securitisation. The notification did not result in a decision on whether Finansinspektionen considered the credit risk to have been transferred or not. The new notification requirements mean that the originator shall provide some information for the assessment of the SRT. The information requested is broadly the same as that requested previously. In the assessment, Finansinspektionen may decide that the risk is not to be considered transferred, which differs from the previous procedure. The notification is also now associated with a fee of SEK 105,000.
Read more: https://fi.se/sv/bank/sok-tillstand/bank–eller-finansieringsrorelse/vardepapperisering-med-betydande-riskoverforing/
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