Finansinspektionen (FI) has imposed a temporary add-on to SEB's capital requirements after identifying significant deficiencies in the bank's internal credit risk models. This decision was made to mitigate the impacts of these deficiencies until they are corrected.

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Capital requirements ensure that banks maintain a minimum level of loss-absorbing capacity to manage unexpected credit losses. These requirements are derived by applying a percentage to the bank’s risk-adjusted exposures. While banks typically follow a standardized approach for calculating capital needs, they can apply to use internal models, pending approval from FI.

Since 2007, SEB has been authorized to employ internal models for its credit risk calculations. A review by FI in 2023 revealed substantial deficiencies in these models, prompting the regulator to implement a temporary capital add-on in September 2023. Other banks have also faced similar measures for model deficiencies.

A more comprehensive review in 2026 of SEB's internal models for corporate exposures revealed that the issues were even more extensive than previously acknowledged. This situation indicates that the calculations supporting SEB's capital requirements do not align with regulatory standards and will take time to rectify.

In accordance with regulations, FI is mandated to address the implications of such model deficiencies until they are resolved. The latest decision raises SEB’s core Tier 1 capital requirement by an additional SEK 10 billion, on top of the SEK 10 billion from the previous add-on, totaling an increase of approximately SEK 20 billion. As of June 30, 2026, SEB’s core Tier 1 capital requirement was SEK 154 billion.

The new add-on will establish a minimum threshold for the risk exposure amounts under the affected models, which will increase total risk exposure by around 15 percent when combined with the earlier add-on. SEB is required to implement these new floors from December 31, 2026.

SEB has initiated an action program to address all identified deficiencies, and FI will closely monitor the bank’s progress. The capital requirement add-on will remain in effect until SEB implements approved model changes that effectively address these deficiencies.