June 29, 2018 / 12:37 PM / 17 days ago

Finland introduces systemic risk buffer on banks

HELSINKI, June 29 (Reuters) - Finland’s financial watchdog said on Friday it would impose additional capital requirements on banks, a so-called systemic risk buffer, partly to mitigate the risks from Nordea’s planned move of its headquarters from Stockholm to Helsinki.

“The structural systemic risks are so high in Finland’s financial system that it is justified to impose a systemic risk buffer on all credit institutions,” said Marja Nykanen, chairwoman of the Finnish Supervisory Authority.

The additional buffer, which will take effect from July 2019, will be 3 percent for Nordea, 2 percent for Op Group, 1.5 percent on Municipality Finance Plc and 1 percent on other Finnish credit institutions. (Reporting by Stine Jacobsen; Editing by Simon Johnson)

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