SEB falls after Swedish regulator raises capital requirements
BUZZ-SEB falls after Swedish regulator raises capital requirements ** Shares in Sweden's SEB SEBa.ST fall around 4% after bank regulator Finansinspektionen (FI) said the bank is temporarily subject to higher capital requirements due to model deficiencies
** The capital requirement add-on will remain in place until SEB implements model changes approved by FI that remedy the deficiencies, the regulator says
** Review outcome is expected to temporarily affect SEB's capital buffer negatively by 120 bps through an increase in risk exposure amount of around SEK 150 billion, the bank says
** SEB says it expects to start submitting IRB model applications in Q3 of 2027 at the latest
** If losses hold, the shares are on track for their worst day since January
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