Capital floors could spur risk-taking – Swedish FSA

"Very careful" calibration needed to avoid bad incentives, says senior supervisor

Uldis Cerps, Finansinspektionen: Basel should be "very careful" with capital floors

If regulators impose harsh minimums on modelled capital numbers, it will encourage banks to take more risk, a senior bank supervisor has warned.

The Basel Committee on Banking Supervision is working on a system of floors that would prevent modelled risk-weighted assets (RWAs) falling below some percentage of the standardised capital approaches for credit, market and operational risk. Proposals were published in December but did not touch on where the floors should be struck.

"Calibrating the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here