Finansinspektionen (FI ) intends to raise the countercyclical buffer rate to 2 per cent in Q2 2022.
The countercyclical capital buffer was lowered during the pandemic to ensure that banks would be able to maintain the supply of credit even if they experienced large credit losses. These losses have not been realised, and FI sees no signs that banks are experiencing difficulties in maintaining the supply of credit. Rather, the continued high growth in household debt and the rapidly rising growth in the debt of non-financial corporations indicates that systemic risks are rising, eventhough it is likely that the growth in debt moving forward will slow from inflationary pressures and rising interest rates.
FI therefore intends to raise the countercyclical buffer rate to 2 per cent in Q2 2022. Due to the implementation period of twelve months, this level of the buffer rate can enter into force in Q2 2023. This increase completes the authority's gradual increase of the buffer rate to the neutral level, which began in September 2021.
FI communicated its intention to raise the buffer rate in its report "Stability in the Financial System (2022:1)", which was published today. Affected firms and industry associations may submit their opinions on the communicated intention by 10 June. FI has also initiated a collaboration with the Riksbank and the Swedish National Debt Office. FI's Board of Directors will thereafter decide on this matter on 21 June.