STOCKHOLM (S&P Global Ratings) Oct. 9, 2020--S&P Global Ratings said that Swedish banks will be able to manage the expected increase in maximum distribution amount (MDA) thresholds thanks to their high capital ratios. The Swedish Financial Supervisory Authority (SFSA) announced its proposed interpretation of the EU banking package for capital requirements on Sept. 25, 2020. The proposal clarifies its interpretation of the banking package's changes to the Pillar 2 requirements, the implementation of Pillar 2 guidelines, and the application of the capital buffers. This approach will result in increased MDA thresholds across the sector. We expect that the SFSA will finalize the requirements over 2020-2021, and the SFSA expects that most of the regulations will be effective by end-June 2021.
