Maintaining stable earnings over time requires not only a low risk level, where each borrower’s solvency, solidity and collateral are the determining factors, but also the ability to quickly adapt to changing customer behaviour and other market factors. Swedbank shall maintain a sustainable balance between deposits and lending and aim to match all maturities. Our priority is sustainable growth.

Risk and capital adequacy reports

Shareholders have an interest in a high return on the capital they invest in the bank and thus that shareholders’ equity is not unnecessarily high. For creditors and society, on the other hand, it is important that the bank maintains a sufficient buffer, or risk capital, to cover potential losses. The capital adequacy rules therefore set minimum requirements on the size of the buffer based on how much risk the bank assumes.

The Risk and Capital Adequacy Reports provide Pillar 3 disclosures as required by the global framework for capital and liquidity, established by the Basel Committee on Banking Supervision, also known as Basel 3. In the European Union, the disclosure framework in Basel 3 is implemented in Part Eight of the “Regulation (EU) 575/2013 on prudential requirements for credit institutions and investment firms” (CRR) and the “Directive (EU) 2013/36 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms” (CRD).