Swedish Banks Unlikely To Incur Major Losses On EZ Crisis: Riksbank
2011-08-19 15:03:21
Swedish banks are unlikely to incur major loan losses due to the debt crisis in Europe, Riksbank said Friday.
"There is very little risk that the Swedish banks would suffer major loan losses, as their exposure to the countries with sovereign debt problems in Europe is slight," the central bank said citing comments made by Governor Stefan Ingves following a Riksdag Committee on Finance's extra meeting on August 16.
"However, they could be indirectly affected, as they depend on obtaining funding through the international capital markets."
The central bank also said it is monitoring closely and are keeping regular contact with banks and others to evaluate the potential effects on financial stability. The bank added that it is well prepared to take action, if necessary, to safeguard financial stability.
However, the Swedish central bank does not see any reason at present to take any measures. The country's banks are well-capitalized and currently have access to funding on the global capital markets, the bank said.