STOCKHOLM, June 21 (Reuters) - Sweden’s financial watchdog said on Tuesday capital needs at Nordea had been significantly overstated in a newspaper report that said the Nordic region’s biggest bank could need to raise as much as 80 billion Swedish crowns ($9.7 billion).
Daily Svenska Dagbladet reported on Monday an internal document at Sweden’s Financial Supervisory Authority (FSA) showed Nordea underestimated risks in its corporate lending, meaning the bank needed capital to meet regulatory requirements.
A spokesman at Nordea said the bank had more than met capital requirements in the FSA’s latest assessment. The bank would be issuing further comment on Tuesday, he added.
The FSA said in a statement that while it had previously announced it was evaluating major Swedish banks’ internal models and made clear this would result in higher capital requirements, the reported need at Nordea was overstated.
“The FSA has previously assessed that the evaluation will result in raised capital requirements,” the watchdog said.
“For Nordea’s part, as far as we can currently judge, the need for additional capital will be significantly lower than what is reported in the article.”
The watchdog also said its stability report, released in late May, had shown Nordea as well as the other Swedish banks, which include Swedbank, Handelsbanken and SEB, more than fulfilled current capital requirements.
$1 = 8.2514 Swedish crowns Reporting by Niklas Pollard; Editing by Mark Potter