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 Q2 2025
- Proposed changes to amortisation requirements and mortgage caps
A memorandum from the Ministry of Finance submitted for consultation on 17 June proposes several changes to the mortgage rules. Among other things, it is proposed that the stricter amortisation requirement be abolished and that the mortgage cap be raised. The memorandum proposes, among other things, that: the first amortisation requirement remains the same, i.e. a continued requirement of one per cent amortisation for loans between 50 and 70 per cent of the value of the home, and two per cent amortisation for loans over 70 per cent of the value of the home; the stricter amortisation requirement based on the debt-to-income ratio is abolished, the mortgage cap will be raised from 85 to 90 per cent, which means that the personal contribution does not need to be as large when buying a home as it is today; additional borrowing will be limited to 80 per cent of the home's market value; revaluation of the home, with the aim of increasing the borrowing capacity, will only be possible every five years. The intention is to strike a better balance between reasonable conditions for households and justified restrictions that can discourage indebtedness. The legislative changes are proposed to enter into force on 1 April 2026.
Read more: https://www.regeringen.se/pressmeddelanden/2025/06/foreslagna-forandringar-av-amorteringskrav-och-bolanetak/
- EBA launches consultation on revised disclosure requirements for ESG risks, equity exposures and aggregate exposure to shadow banking
The EBA has published a consultation paper finalising the implementation of the Pillar 3 disclosure requirements introduced by the banking package (CRR3), including the extension of the scope of ESG-related disclosures to all institutions and the disclosure requirements for shadow banking and equity exposures. In line with the European Commission's so-called omnibus proposal, which aims to reduce reporting costs and simplify sustainability reporting, the EBA has designed a proportionate approach to ESG disclosures based on the type, size and complexity of the institution, with simplified requirements for banks other than large ones, especially for those that are small or unlisted. Transitional provisions have been introduced to support institutions and facilitate the initial implementation of the new requirements, with the new templates proposed to apply from 31 December 2026.
Read more: https://www.eba.europa.eu/publications-and-media/press-releases/eba-launches-consultation-amended-disclosure-requirements-esg-risks-equity-exposures-and-aggregate
- FI follows guidelines for managing ESG risks
The Guidelines (EBA/GL/2025/01) are based on Article 87a(5) of the Capital Requirements Directive (CRD). The Guidelines, published on 9 January 2025, specify the new requirements on ESG risks introduced by the new EU banking package CRD 6 and CRR 3. The Guidelines set out the internal governance arrangements and processes that credit institutions should have in place to identify, measure, manage and monitor ESG risks. The guidelines also specify the content of plans to be prepared by institutions, which should include timelines and targets for how the institution will monitor and manage ESG risks. The guidelines shall be applied from 11 January 2026 at the latest, except for small and non-complex institutions for which they shall be applied from 11 January 2027 at the latest. FI has announced its intention to follow the guidelines with the reservation that the implementation process in Sweden regarding the underlying directive provisions has not yet been completed.
Read more: https://fi.se/sv/publicerat/nyheter/2025/fi-foljer-riktlinjer-for-hantering-av-esg-risker/
Newsletter
If you would like to learn more about our customised newsletter or need support implementing actions arising from the new regulations, please contact us below.
