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 Q3 2024
- Legal opinion: How to interpret rules on deposits via digital platforms
The Financial Supervisory Authority (FI) has published a legal opinion on the question of whether companies that provide digital deposit platforms, such as Avanza or Raisin, should be considered deposit intermediaries under the Capital Requirements Regulation (CRR). According to FI, the platform company places deposits with credit institutions within the meaning of Article 411(4) of the CRR and is therefore a deposit intermediary. According to the position paper, the design of deposit platforms may create greater volatility in the deposits placed through them. The position statement has the effect that credit institutions that have not previously treated deposits via Avanza or Raisin as deposits from deposit intermediaries may be subject to higher requirements to hold liquid assets under the LCR and available stable funding under the NSFR. The decision applies from 30 September 2024 until further notice.
Read more: https://fi.se/sv/publicerat/rattsliga-stallningstaganden/lista-rattsliga-stallningstaganden/n20242-inlaning-genom-digitala-inlaningsplattformar/
- Tapered interest deduction for unsecured loans
The Ministry of Finance has published a consultation paper proposing that the interest deduction for unsecured loans be phased out over two years. The interest deduction for the tax year 2025 may be made with 50 per cent of interest expenses on unsecured loans, and no deduction may be made for the tax year 2026 and onwards. As before, interest must be deducted on loans secured by a dwelling, securities, vehicle, boat, ship or aircraft, and on loans granted by a pawnbroker. Interest will also be deducted if the loan relates to the financing of the construction, extension or conversion of a building and the intention is that the loan will be converted into a loan secured by a dwelling when the construction project is completed. The proposal is proposed to enter into force on 1 January 2025.
Read more: https://www.regeringen.se/pressmeddelanden/2024/08/avtrappat-ranteavdrag-for-lan-utan-sakerheter/
- Strengthening consumer protection against risky lending and over-indebtedness
The Ministry of Justice has published a bill proposing that the interest rate cap for consumer credit be lowered from 40 to 20 per cent above the current reference rate, that the concept of high-cost credit be abolished, and that the rules that previously applied only to high-cost credit apply to most consumer credit. The cost ceiling, which means that the total cost of a credit may not exceed the amount of the credit, previously applied only to high-cost credit. It is now proposed to apply to all consumer credit except for housing credit, overdrafts that mainly relate to credit purchases, and small credit purchases (SEK 1,146 in 2024). The rules that the maturity of a credit may only be extended once previously only applied to high-cost credit and are now proposed to be extended to all consumer credit except housing credit. The proposal is proposed to enter into force on 1 March 2025.
Read more: https://www.regeringen.se/rattsliga-dokument/proposition/2024/09/prop.-20242517
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