Sweden FSA head sees capital buffers above 2.5 pct only in extremes
STOCKHOLM, Sept 3
STOCKHOLM, Sept 3 (Reuters) - Sweden's financial watchdog said on Tuesday that counter-cyclical capital buffers planned for the banking sector would only in extreme situations rise above 2.5 percent of risk-weighted assets.
FSA head Martin Andersson said in a telephone interview with Reuters that the buffers, roughly outlined by the government late last month, would under normal circumstances be in the range of zero to 2.5 percent.
Andersson also said that the buffers would not be used for any "fine-tuning" of the broader economy and would be linked to credit growth. This meant that under circumstances such as the present, the buffers would not be at zero. (Reporting by Johan Ahlander and Daniel Dickson; writing by Niklas Pollard)
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