| Contact Us | About UsAdvertisement | 
Weather Forecast


Swedish banks are well equipped for major crisis
Tuesday, 29 November 2011
The major Swedish banks can handle a stormy days head and are well equipped to meet the challenging economic times in the future, according to the Riksbank's Financial Stability Report.
But to maintain resilience for uncertain times, banks must maintain or increase their cash reserves, which the Riksbank, the FSA and the government announced last week.

But confidence among the public is hardly soaring. Three out of four do not trust banks, according to the latest Consumer Confidence Survey.

The Riksbank has stress tested the four major banks. One scenario being painted is where Swedish GDP falls sharply over the next three years, from 2 to 4 percent per year, and where the big banks face the combined losses of Skr195 billion during the three years, seven times more than the main scenario.

Still, reducing banks' cash reserves, as measured by core capital ratio, will only be marginal since the Riksbank Bank expects that there will be continued good earnings.

Swedish banks are therefore properly protected against the ware and tear of the financial market and the economic stresses.
By Scancomark.se Team

| Print Friendly and PDF| Write to the editor | Complaint about this article | Make a Comment |
Swedband to cut workers more than previously thought

What do you think about the above article? Please leave us a comment and reaction. Thank you.
  • Should be Empty: