Swedbank gets green light for corporate credit risk model

STOCKHOLM, June 16 Mon Jun 16, 2014 3:04am EDT

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STOCKHOLM, June 16 (Reuters) - Swedbank said on Monday Sweden's Financial Supervisory Authority had approved its use of a credit risk model for corporate exposures in Sweden and Norway, boosting some measures of its capital position.

Swedbank said the use of the advanced internal ratings-based approach will reduce the bank's risk exposure amount by nearly 70 billion crowns ($10.5 billion), adding this was a bit more than it had previously estimated.

It will also strengthen the bank's Common Equity Tier 1 capital ratio by approximately 3.4 percentage points, calculated as of March 31, Swedbank said in a statement.

($1 = 6.6448 Swedish Kronas) (Reporting by Sven Nordenstam, editing by Mia Shanley)

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