Nordea gets corporate IRB OK from FSA

Nordea has received approval to apply the advanced internal ratings-based (IRB) approach to its corporate exposures in the Nordic region, which will boost its pro forma Q3 2013 Core Tier 1 capital ratio by 0.7 percentage points, the bank said yesterday (Wednesday).

The Swedish Financial Supervisory Authority (FSA), in agreement with the other three Nordic FSAs, gave the green light on Tuesday, according to Nordea.

“This approval will affect Nordea’s core Tier 1 capital ratio due to lower risk-weighted assets as well as higher Core Tier 1 capital,” it said. “The pro forma Q3 2013 impact on the Core Tier 1 capital ratio is calculated at approximately 0.7 percentage points.”

The bank previously stated its pro format Q3 2013 Core Tier 1 ratio as being 15%-16%, and said this is confirmed by Monday’s approval.