The Nordic Bank Capital and Funding Forum

The Nordic Bank Capital and Funding Forum will make its debut on Tuesday 20th March 2018, in Stockholm. Bringing bank treasurers and funding officials, together with investors, regulators and the sponsoring intermediaries, the Forum will focus on new capital requirements and instruments and investor appetite for these. The agenda will review the capital stack of the region’s banks, from AT1 to covered bonds and the asset side of the balance sheet, as it faces fundamental changes as a result of new regulation.

The Forum will look at:

 - The implications on domestic funding, in particular for covered bonds in Denmark and Sweden, following the EBA’s proposed new rules for that market.
 - Low RWA balance sheets, and consequential ‘best in class’ capital ratios which are fundamentally challenged by RWA floors and leverage ratios. The STS securitisation directive may provide a solution, but the prognosis for this remains unclear.
 - Cross border operations which are predicated on a close co-operation between regional banking supervisors and legal systems. Is this challenged by the resolution regime rules and the proposed intermediate parent undertaking rules?
 - The ECB’s quantatative easing and extraordinary monetary policy which may be coming to an end. Will the Riksbank and Danmarks Nationalbank finally be able to normalise their rates as a consequence? What are the implications for regional economies that have acclimatised to a negative rate environment?
 - The Capital Markets Union, designed to increase cross border flow of funds in the euro-zone and the multi-faceted implications for the Krona and Krone denominated markets.
 
These challenges will have far reaching implications on the Nordic banking model: the structure of domestic capital markets will change, business models will need to be modified and there will be far-reaching M&A implications, in particular for investments in neighbouring markets from the Baltics to post-Brexit Britain.
 
At this conference we will discuss these changes and their implications with regulators, rating agencies and investors and attempt to get a better understanding of the future model of banking in the Nordic region and on the more near term implications for capital issuance.