Sweden Regulator Calls For Bank To Ignore Capital Rules

Sweden's banking regulator calls for banks to ignore capital rules and implement harmonized standards of individual rules which better match the risk of the national banking system. Rules of risk-adjusted banking nationwide, is considered to be the key to avoid the next financial crisis.

Sweden became the basis of European banks are the most secure of the crisis. Swedish Financial Supervisory Authority or the Financial Supervisory Authority (FSA), has set more stringent rules than those issued by Basel Committee on Banking Supervision (Basel Committee on Banking Supervision).

Martin Andersson, Director General of the FSA, said the banking rules are uniform in the world do not take into account the lessons from the financial crisis. "Ridiculous and negative, have the same rules in all countries," he said.

He recommends, countries in the world have a minimum level of bank risk individually. Countries with larger banking systems, has the potential risk to the larger economy as well. Thus, the need for a national standard set higher more urgent.

Andersson previously proposed a three-fold increase in risk weighted assets of the bank for a mortgage up to 15%. It was done in order to balance the burden of private debt and property prices have soared.

According to Andersson, Swedish banks have a risk to household debt, in contrast to other banks in Europe. "Each country has the right to impose a higher level of risk," said Adair Turner, chairman of the UK Financial Services Authority.

Andersson's call to debate the need for unification of the rules part of the European banking system. Christian Clausen, President of the European Banking Federation of the European Banking Federation or, said European banks need to operate under the same rule book.

According to Clausen, differences in regulation of the banking industry in Europe creates a competitive disadvantage. Therefore, the man who also served as Chief Executive Officer (CEO) of Nordea Bank AB is hoped that European banks will eventually have one standard rules such as Basel rules.