Sweden is better prepared for a banking crisis

5 February 2019

Sweden is now better prepared for a financial crisis than it was ten years ago. This was emphasised by Swedish National Debt Office Director General Hans Lindblad when he spoke today at the Riksdag Committee on Finance’s open hearing on financial stability.

“We currently have a framework that enables us to manage a bank in crisis more effectively than in 2008, and which protects the Swedish taxpayers. We see that it works. The rating and market pricing indicate that market participants do not expect the state to intervene in a banking crisis to the same extent as previously. My overall assessment is that the regulatory framework has earned credibility,” says Director General Hans Lindblad.

Hans Lindblad also highlighted the current risks and vulnerabilities in the Swedish economy. 

“The risks and vulnerabilities we are now seeing include a sustained high level of risk-taking in global financial markets and a high level of indebtedness of Swedish households. In addition, there are new issues, such as money laundering and cyber threats against the sector, which risk threatening financial stability. We need to discuss these issues further,” says Director General Hans Lindblad.