Buffertkrav

Buffertkrav, or buffer requirements, are regulatory provisions that require financial institutions to hold additional capital or liquidity beyond the standard minimum levels. They are intended to strengthen resilience to shocks, dampen procyclicality in lending, and reduce the likelihood that taxpayers are exposed to losses during crises. Buffers operate alongside baseline requirements and are designed to be maintained at all times.

Common forms of buffertkrav include capital buffers and liquidity buffers. In capital terms, buffers such as the capital conservation buffer, systemic risk buffer, and countercyclical capital buffer are expressed as percentages of risk-weighted assets. They require banks to hold extra high-quality capital above the minimum. Liquidity buffers require a portion of liquid assets that can be deployed quickly in stress, separate from everyday liquidity management.

Regulatory frameworks typically set the existence and size of buffers, with international standards (like Basel III) implemented through national rules. In Sweden and other EU member states, authorities such as Finansinspektionen (FI) apply EU-wide requirements and may impose additional national buffers based on domestic risk assessments. The exact measures and their sizes are published by the relevant regulator and can vary by institution type and systemic importance.

Calculation and enforcement: Buffers are calculated on top of the minimum capital or liquidity requirements. If a bank falls short of a required buffer, it may face restrictions on distributions (for example, dividends or share buybacks) and is expected to restore the buffer within a defined period.

Impact: Buffertkrav influence capital planning, risk management, and lending behavior, contributing to greater financial stability by ensuring institutions can absorb losses and withstand periods of stress.