Capital adequacy
The capital base serves as a buffer against unexpected losses that can arise from risks to which Swedbank is exposed. The rules on capital adequacy – the regulatory capital – express legislators’ opinion of how much capital (capital base) a credit institution, such as a bank, must have in relation to the size of its risk taking expressed in the form of risk-weighted assets.
Swedbank's capitalisation will ensure it can withstand a stressed scenario from a solidity perspective and that it has access to competitive capital market funding. Low risk and a high earning capacity mean lower capital requirements, and vice versa.
We conduct stress tests to identify the potential effects of possible, though unlikely, negative scenarios and to assess whether the capital buffer is satisfactory at any given point in time.
Reports from the SFSA and the Riksbank reaffirmed Swedbank’s strong capital situation, as did the comprehensive stress test of all major banks within the EU conducted during 2014.
Relevant links
- Capital adequacy
- Risk and capital adequacy reports
- Annual reports (Risks note G3, Capital note G4):
- Interim reports and fact book