The transitional impact of the new International Financial Reporting Standards on the regulatory capital ratios of Sweden's four major lenders is expected to be "modest," according to the country's central bank.

"The four major Swedish banks expect provisions to increase, but the effect on regulatory capital will be modest," the Sveriges Riksbank said in an economic commentary published Feb. 16, noting that the projection is based on information released by the lenders in their fourth-quarter 2017 financial reports.

The regulator also said that in the long run, if implemented in a sound way by banks, IFRS 9 could help boost transparency on lenders' credit risks and asset quality, improve their credit risk management and reduce procyclicality through a more timely recognition of credit losses, potentially improving financial stability.

The four major banks in Sweden are Svenska Handelsbanken AB (publ), Skandinaviska Enskilda Banken AB, Swedbank AB (publ) and Nordea Bank AB (publ).

Meanwhile, the central bank's general council decided to extend the term of Deputy Governor Martin Floden for another six years to May 21, 2024.