Sveriges Riksbank: Swedish financial markets are functioning well despite continued uncertainty in euro area

21 May 2013

According to the Riksbank's spring 2013 risk survey, it is still developments in the euro area that comprise the main risk to the Swedish financial system in the coming period.

The low interest rate environment has also meant that investors have been inclined to turn to higher-risk investments to obtain higher returns. At the same time, recent developments in Cyprus and Italy have acted as a reminder that there are still structural problems among the debt-ridden countries in the euro area. The majority of the respondents therefore believe that their propensity and possibility to take on risk will remain unchanged in the coming period.

The regulations introduced over the past six  months, such as the Liquidity Coverage Ratio for Swedish banks, have not  affected the functioning of the markets to any greater extent. However, many  of them state that they are uncertain over the effects of coming regulations for  banks through Basel III and for derivatives on the OTC market through EMIR.

Full press release

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