Sweden to hike capital requirements for banks

Sweden to hike capital requirements for banks to safeguard economy

Associated Press

STOCKHOLM (AP) -- Sweden's government plans to raise capital requirements for the country's biggest banks to ensure financial stability in the wake of Europe's debt crisis.

The proposal presented Friday calls for Swedish banks to hold equity capital equal to 10 percent of risk-weighted assets in 2013, and 12 percent in 2015.

That's higher than the requirements under new international banking guidelines known as Basel III.

Financial Markets Minister Peter Norman says the center-right government's plan will curb risk-taking and make Sweden less vulnerable to financial crises.

The proposal must be approved by Parliament.

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