European Banking Authority: temporary extension of Swedish macroprudential measures is in line with EU law
Yesterday, the European Banking Authority (EBA) published a positive Opinion regarding the envisaged extension by the Swedish Financial Supervisory Authority, FSA (Finansinspektionen) of macroprudential measures applicable to Swedish institutions adopting the Internal Ratings-Based (IRB) approach. The measure aims at mitigating changes in the intensity of risk that could pose a threat to financial stability in Sweden and concerning risk weights to target asset bubbles in the residential property and commercial immovable property sectors.
The original supervisory measure was introduced by FSA in 2018, following a positive Opinion by EBA, and will now be applied for an additional year, from 31 December 2020 to 30 December 2021. It i