Implementing Basel III in Sweden - A case study of the four major banks' reactions to the new requirements of the EU and the SFSA

Sammanfattning: There is a great amount of media coverage and literature surrounding the Basel III framework. Sweden has been given particular attention due to the readiness in which the Swedish Financial Supervisory Authority (SFSA) has implemented the corresponding framework through the directives and requirements of the European Union. Although a vast amount of attention has been given these implementations there is a lack of response from the side of the banks in the statements. Literature such as The Bankers’ New Clothes by Admati and Hellwig (2013) show that banks and regulators can have very different perspectives on what needs to be regulated and what type of regulations will lead to a healthy banking system. This thesis report analyzes the reactions of the major and systemically important banks in regards to the new regulations. The four major banks in Sweden (SEB, Swedbank, Svenska Handelsbanken and Nordea) have been interviewed to bring forth their perspectives of the new regulations in light of statements made by the SFSA. This report concludes that the general implementation of the regulations has been a heavy weight to for the banks to handle as far as human capital and high level of technicality considers. This study also shows that banks are managing the new implementations that have been made, as of today. However, when the future effects of the regulation requirements are considered, the bank representatives worry about possible negative consequences as a result of the current requirements.