Riksbank calls for separate LCR in local currency
Swedish central bank is wary of banks' ‘extremely low' krona buffers
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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