Although banks expected a delay in implementation, the Swedish government will move forward with an EU rule that caps the number of board positions that directors at systemically important financial institutions can hold at four. The requirement goes into effect in July, lacking an extended transition period the country’s largest banks aggressively lobbied for.
The governance change adheres to new EU rules included as part of its Capital Requirements Directive IV package. The rules, which also impose heightened capital standards on bank capital to satisfy requirements of the international Basel III accord.
