Nordea has received permission for continued use of existing internal models from the ECB
As part of the planned re-domiciliation to Finland, Nordea Bank Abp (“Nordea”) reached another milestone in the transition from the Swedish FSA (“SFSA”) regulatory framework to the banking union regulatory framework by being granted temporary use of internal models for calculation of risk exposure amounts (“REA”) from the European Central Bank (“ECB”). The decision, as expected, implies a migration of Pillar 2 capital add-ons into Pillar 1 REA and an unchanged nominal capitalisation level. As previously communicated, Nordea has voluntarily committed to comply with the SFSA 2018