About the countercyclical capital buffer

As needed, FI should set or change a countercyclical buffer rate. The general principles for FI’s decisions regarding the buffer rate are described in the memorandum "FI’s approach to setting the countercyclical capital buffer".

The countercyclical buffer rates serves as a basis for the calculation of the size of the so-called institution-specific countercyclical capital buffer. Firms that are obligated to hold such a capital buffer – and thereby must use the countercyclical buffer rate set by FI – are credit institutions, some securities companies, and Svenska skeppshypotekskassan. FI makes an assessment every quarter about the appropriateness of the current buffer rate and if there is a need to change it. Decisions to change the buffer rate are published on FI's website.

During even-numbered quarters, FI publishes its assessment of the buffer rate in its report "Stability in the Financial System". In conjunction with this, affected firms and industry associations have the possibility of submitting their opinion of the assessment. Prior to a decision to raise the buffer rate, FI will also consult with the Riksbank and the Swedish National Debt Office.

Countercyclical buffer rate and buffer guide

FI sets the countercyclical buffer rate for Sweden following a qualitative assessment that takes quantitative factors into consideration. An important but non-deciding factor is the countercyclical buffer guide, which is also set by FI. In addition to the buffer guide, FI also considers other quantitative variables that are relevant for assessing the cyclical systemic risks.

Last reviewed: 2022-05-31
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