Sweden's FSA head, Erik Thedeen, has said that the regulator will keep a close eye on banks' models for measuring the capital they need in relation to the risk in their lending portfolios following the tightening of rules last week. He added that if the banks do not act responsibly the Financial Supervisory Authority's could move towards a broader leverage ratio which measures capital in relation to total lending.
Sweden's Financial Supervisory Authority's head, Erik Thedeen, has said that the regulator will keep a close eye on banks' models for measuring the capital they need in relation to the risk in their lending portfolios following the tightening of rules last week. He added that if the banks do not act responsibly the FSA could move towards a broader leverage ratio which measures capital in relation to total lending.