Swedish financial stability risks rising, Riksbank says

Sveriges Riksbank
Benjamin Horn

The Covid-19 crisis is increasing the risk that Swedish banks will not be able to provide the credit necessary for the real economy, said the Sveriges Riksbank on May 20.

The central bank’s financial stability report warns “without further economic policy measures, credit losses in the banking sector then risk increasing to such an extent that banks may have problems maintaining credit supply”.

So far, the Riksbank believes the Swedish financial system is successfully responding to the

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