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Toughest Bank Rules Underpin Sweden Stress Test Supremacy

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Sweden’s banks topped the European Banking Authority’s examination, a result the nation’s regulator says is largely due to its commitment to some of the world’s strictest capital requirements.

In an adverse scenario, Sweden’s four biggest banks would have an average capital ratio of 14.6 percent of risk-weighted assets, compared with the 5.5 percent needed to pass, according to the EBA and Bloomberg calculations. That was the highest simple average of major banks of any European Union country.