financial stability report 2011:2. banks are resilient
TRANSCRIPT
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Financial Stability Report
2011:2
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Banks are resilient
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…but there is considerable uncertainty
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Financial market unrest
2
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30
34
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6
10
14
18
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34
Aug-08 Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11
Greece Ireland Portugal Italy Spain
Interest on ten-year government bonds Source: Reuters EcoWin
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Household and company borrowing is slowing down
Source: The Riksbank
-10
-5
0
5
10
15
20
-10
-5
0
5
10
15
20
99 00 01 02 03 04 05 06 07 08 09 10 11 12
Lending to companies Lending to households
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Limited loan losses
Sources: Bank reports and the RiksbankThe major Swedish banks, totalled over four quarters, SEK billions, fixed prices, September 2011
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The banks are well-capitalised compared to other countries
0 2 4 6 8 10 12 14 16 18
UBSSwedbank
HandelsbankenSEB
Credit SuisseStandard Ch.Danske Bank
RBSBarclaysNordea
HSBCLloyds TSB
IntesaDeutsche Bank
B. Popular EspanaBNP
Societe Gen.Santander
CommerzbankBBVA
Raiffeisen IntErste BankUniCreditoDnB NOR
Core Tier 1 capital ratios in accordance with Basel II Sources: Bank reports and the Riksbank
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The banks can manage significantly weaker development
Sources: Bank reports and the RiksbankCET 1 capital ratios according to Basel III initially and in stress test
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The banks’ liquidity risks
Sources: Liquidatum and the RiksbankSurvival period, number of days, assuming that the banks experience stressed deposit outflows and fail to refinance half of the market funding that falls due during a 3-month period.
0
10
20
30
40
50
60
70
80
90
100
Handelsbanken Nordea SEB Swedbank
December 2009 December 2010 September 2011
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The Riksbank’s recommendations
The major Swedish banks should maintain or continue to increase their current CET 1 capital ratios
The major Swedish banks should continue to reduce their funding and liquidity risks
The major Swedish banks should continue to improve their public liquidity reporting
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Higher capital adequacy requirements than the Basel III minimum
At least 10 per cent from 1 January 2013
At least 12 per cent from 1 January 2015
According to Basel III, 7 per cent gradually during 2013 -2019
Capital adequacy requirements specified excluding countercyclical buffer
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Short-term liquidity measure should be introduced earlier
Start dates according to the Basel Committee’s proposals and the Riksbank’s recommendations
Source: The Riksbank
LCR
(Liquidity Coverage Ratio) LCR in EUR and USD
Basel Committee Jan 2015 Not binding
Riksbank Jan 2013 Jan 2013
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Liquidity reporting needs improvement
The table is based only on information in the banks’ interim reports. Sources: Bank reports and the Riksbank
Information available per
quarterLiquidity buffer
Distribution of maturities, assets
and liabilities
Comparable key figures and
liquidity measures
Nordea
SHB
Swedbank
SEB
Meets minimum level
Reported, but does not meet minimum level
Absent or only marginally reported
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Banks are resilient
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EXTRA SLIDES
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0 100 200 300 400 500 600 700
EstoniaSlovakiaRomaniaLithuaniaBulgariaPoland
HungaryLatvia
Czech RepublicFinland
SloveniaLuxembourg
ItalyBelgium
GreeceAveragePortugal
IrelandAustria
GermanyFrance
DenmarkSpain
SwedenNetherlands
United KingdomSwitzerland
De svenskastorbankernas utländskaverksamhetThe major Swedish banks´ foreign operations
The banks’ balance sheets in relation to GDP
The data refers to December 2010 Sources: The ECB, the Swiss National Bank and the Riksbank
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Capital adequacy requirements for the major Swedish banks
Riksbankensrekommendation
januari 2013
Riksbankensrekommendation
januari 2015Kapitaltäcknings-kraven i Basel III
Countercyclicalbuffer 0 - 2,5%
Conservationbuffer 2.5%
Conservationbuffer 2.5%
Conservationbuffer 2.5%
Minimum requirement
for major banks 7.5%
Minimum requirement
for major banks 9.5%
Minimum requirement
4.5%
12,5%
10%
12%
14,5%
9,5%
7%
The Riksbank’s recommendation
January 2013
The Riksbank’s recommendation
January 2015
Capital adequacy requirements
in Basel III
Countercyclicalbuffer 0 - 2,5%
Countercyclicalbuffer 0 - 2,5%
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Basel Basel minimumminimum
4.5%4.5%
Ring-fencebuffer
3%
CCB2.5%
Basel Basel minimumminimum
4.5%4.5%
SIB SIB surchargesurcharge
5%5%
CCB2.5%
9.5%
12.0%
United Kingdom
Sweden
Basel Basel minimumminimum
4.5%4.5%
TBTF buffer3%
CCB2.5%
Switzerland
Basel Basel minimumminimum
4.5%4.5%
Buffer3%
CCB2.5%
Austria
Basel Basel minimumminimum
4.5%4.5%
CCB2.5%
Basel III minimum
Other capital3.5%
Other capital3.5 %
Other capital3.5%
Bail-in bonds3.5%
Other capital3.5%
Low-triggerCoCos6%
4.5%
10.0%
4.5%
7.0%
4.5%
10.0%
High-triggerCoCos3%
The data refers to December 2010. Not incl. countercyclical cap. buffers. CCB (Capital Conservation Buffer)
Sources: Basel Committee on Banking Supervision, Swiss FMSA, Sveriges Riksbank, Oesterreichische Nationalbank, Independent
Commission on Banking
Capital adequacy requirements in different countries