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ECB informs Nordea of capital requirement during transition to Finland

The ECB has informed Nordea Bank Abp that it must maintain a Pillar 2 level of own funds of about 3.1% for the fourth quarter of 2018 during a period of transition to Finland from Sweden.

The regulator had granted Nordea temporary use of its existing internal models for calculation of risk exposure amounts as part of its transition to the EU banking union regulatory framework from the Swedish Financial Supervisory Authority regulatory framework.

The transition period runs from Oct. 1 until the ECB has issued a decision establishing prudential requirements prepared in accordance with the 2019 joint decision on capital concerning Nordea.

Nordea is expected to maintain a Pillar 2 level of at least €4.945 billion in common equity Tier 1, which is equal to a forecasted level of around 3.1% for the fourth quarter. This is in line with the bank's expectation.

The bank's capital and dividend policy is unchanged.