Riksbank calls for separate LCR in local currency

Swedish central bank is wary of banks' ‘extremely low' krona buffers

sveriges-riksbank

The Riksbank wants to impose liquidity coverage ratios (LCR) in krona on Swedish banks to prop up "sometimes extremely low" liquidity buffers in the domestic currency.

In its bi-annual financial stability report, published today, the central bank calls on Sweden's chief financial regulator, the Financial Supervisory Authority, to require banks to maintain krona LCRs of 60%. The ratio would allow banks to cover net cash outflows in domestic currency for little over two weeks. It would also force

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