Swedish Bankers’ Association (Svenska Bankföreningen)

IMPACT OF THE FINAL BASEL III FRAMEWORK IN SWEDEN

In December 2017, the Basel Committee on Banking Supervision agreed on a new regulatory framework, denoted ‘Final Basel III Framework’. The accord sets out revised international standards, which are now to be implemented on a European level. Among other things, the package includes so-called capital floors which define a minimum level of capital for different types of portfolios. On that basis, the European Banking Federation invited Copenhagen Economics to conduct a macroeconomic impact assessment. The resulting study was published in November 2019.

This report is a follow-up, specifically covering the impact of the final Basel III reform in Sweden, and was commissioned by the Swedish Bankers’ Association.

For the Swedish banking sector and economy we find:

Our conclusion is that a one-to-one implementation of the Final Basel III Framework, will significantly increase financing costs for Swedish businesses, which will bring about costs far exceeding potential benefits.

The study is commissioned by the Swedish Bankers’ Association.

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