Reciprocation of Norwegian systemic risk buffer

The Swedish financial regulator, Finansinspektionen (FI), has published a press release to inform that it has decided to reciprocate the Norwegian Ministry of Finance’s decision to maintain a 4.5% systemic risk buffer for exposures in Norway.
This decision will affect Swedish institutions with risk exposures exceeding 5 billion Norwegian kroners. Currently, this means that the buffer will now additionally apply to Swedbank AB, Nordax Bank AB, and Resurs Bank AB at the group level, besides Svenska Handelsbanken AB and Skandinaviska Enskilda Banken AB, which were already affected by the earlier threshold.
For companies that already fall under the 3% Swedish systemic risk buffer requirement, as determined by Finansinspektionen in accordance with Chapter 4, Section 1 of the Capital Buffers Act, this implies an increase of 1.5% in their systemic risk buffer requirement for Norwegian exposures. The decision will come into effect on June 30, 2023 for institutions utilizing „the advanced internal risk classification method“ and on December 31, 2023 for all others.