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 aims 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 in ensuring 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.

On 1st of January 2014 the capital adequacy rules Basel 3 came into effect in Sweden, replacing Basel 2. The rules strengthen the link between risk-taking and capital requirements and entail, among other things, stricter requirements on banks concerning risk management and information disclosure.