Sweden's news in English

Editions:  Europe · Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Sweden plans new bank crisis law

Share this article

18:07 CEST+02:00
Sweden plans to introduce new rules by year-end to clarify how and when the government would take control of a domestic bank facing financial problems, a finance ministry adviser told Reuters on Wednesday.

"The state will explain to the market that these are the conditions under which the state will go in and take over banking operations which are insolvent or risk falling into insolvency," said Stefan Svanström, a political adviser at Sweden's finance ministry.

"There is currently not a framework which outlines which authority should give support or when or how it should happen," Svanström told Reuters.

He said the proposal would be put forward between the budget later this month and Christmas.

Sweden's central bank governor, Stefan Ingves, had highlighted earlier this year the need for a stronger regulatory framework in Sweden to manage a crisis in its financial system.

The plan also follows action by authorities in the United States and Britain in recent months to prop up ailing financial institutions to prevent wider contagion in markets.

 
Get notified about breaking news on The Local

Share this article

From our sponsors

New Malmö museum will focus on ‘democracy and migration'

Change starts with one small step, whether it be a large or small scale project, it all requires movement. It's a logic that can be applied to starting a new national museum from scratch, especially one with an innovative theme that is going to take several years to come to fruition.