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Press release

SEB: The Swedish FSA's annual decision on Pillar 2 requirements and Pillar 2 guidance

SEB

On 29 September 2023, SEB received the result of the Swedish Financial Supervisory Authoirty's (SFSA) annual Supervisory Review and Evaluation Process (SREP).

The SFSA took the following decisions on Pillar 2 requirements and Pillar 2 guidance for SEB on group level:
  • A Pillar 2 requirement (P2R) of 2.3 per cent, whereof at least 1.6 per cent shall be met with Common Equity Tier 1 (CET1) capital (compared with P2R of 2.0 per cent, whereof at least 1.4 per cent with CET1 capital in the SFSA's corresponding decision on 30 September 2022). The increased P2R compared to the SREP 2022 decision is mainly driven by a temporary add-on for the ongoing review of IRB-models. At the same time, the risk-weight floor for commercial real estate is transferred from P2R to Pillar 1, thereby increasing the risk exposure amount (REA).
  • A REA-based Pillar 2 guidance (P2G) of 0.5 per cent of the group's total risk-weighted exposure amount and 0.5 per cent of the group's exposure for the leverage ratio-based P2G (compared with 1.0 per cent and 0.45 per cent, respectively, in the SFSA's corresponding decision on 30 September 2022.) The P2G shall be covered by CET1 capital.
  • The Pillar 2 liquidity requirements for significant currencies were unchanged compared to 2022.

The decision is applicable as per 29 September 2023.

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