STOCKHOLM, Jan 15 (Reuters) - Banking group Nordea said on Wednesday it had received a green light from Sweden’s Financial Supervisory Authority to use the advanced internal ratings-based (IRB) approach on its corporate loan book.
The approval, which allows the bank to use lower risk weights when calculating its capital buffers on corporate loans, translates into a 0.7 percentage points boost to its third quarter core tier one ratio, the bank said.
Nordea said it had also obtained approval to use the models on its corporate exposures in Russia.
Swedish rival Swedbank is also waiting for an approval from the FSA on its advanced-IRB models. (Reporting by Mia Shanley)