Banks not pleased with FI decision

Yesterday the Swedish Financial Supervisory Authority (Finansinspektionen, FI) decided to raise the lending buffer for banks to 2 percent from 19 March 2017. Chief economist from FI, Henrik Braconier, says the increase is because the authority sees lending growth continuing strongly in the Swedish economy, which means increased risks linked to the banking system.

  However the banks are unhappy. Hans Lindberg, CEO for the Swedish BankersAssociation (Bankföreningen) does not consider strong lending growth a problem. The decision is unfortunate. Further capital requirements make it more expensive to lend money, which hold back growth and the creation of jobs in the Swedish economy,says Lindberg.