The Swedish FSA (Finansinspektionen) has published a methodology for assessing three types of risk under Pillar 2 – credit-related concentration risk, interest rate risk in the banking book, and pension risk – that will be used in capital requirements from the third quarter.

The Danish FSA (Finanstilsynet) set out proposals for a “Supervisory Diamond” for Denmark’s mortgage credit institutions on Thursday of last week (11 September) that aims to reinforce the Danish industry’s systemic stability, including moves away from one year ARMs and interest-only (IO) loans.

Norwegian banks have strengthened their credit underwriting standards, according to a survey by the Norwegian Financial Supervisory Authority (Finanstilsynet), Moody’s noted yesterday (Wednesday), saying this is leading to an overall improvement in the credit quality of covered bond collateral.

The Norwegian FSA may impose higher capital charges on issuers or restrict their issuance if it considers that they are tying up too much collateral in covered bonds, it said on Tuesday, calling for consideration to be given to limits on encumbrance resulting from covered bond issuance.