Swedish finmin says tougher capital requirements limit bank dividends

STOCKHOLM Wed May 21, 2014 11:07am EDT

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STOCKHOLM May 21 (Reuters) - Tougher capital requirements for Swedish banks will limit the size of dividends they can pay out to shareholders, Finance Minister Anders Borg said on Wednesday.

"This places a clear limitation to dividends," Borg said at a banking seminar.

Sweden's Financial Supervisory Authority said earlier on Wednesday a one percent countercyclical buffer for the country's banks was reasonable and that such a capital demand could be activated from summer 2015.

Borg said the move, that would bring core tier one capital requirements to an average 16.4 percent for Sweden's four top banks, was step in the right direction. (Reporting by Johan Sennero; writing by Niklas Pollard)

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