Swedish banks ‘well-equipped’ for crisis

Sweden's four largest banks are all well placed to ride out the current economic turbulence, according to the Swedish Financial Supervisory Authority (Finansinspektionen).

Financing risks represent the greatest threat to Swedish banks, said the authority in a statement.

But measures taken by the Riksbank and the Swedish National Debt Office had helped keep these risks in check, said the authority.

Nordea, Swedbank, Handelsbanken and SEB have the capacity to handle combined losses of 175 billion kronor ($24 billion) without breaching capital demands, according to Finansinspektionen.

The banks are also said to be well-equipped to survive a serious recession in Sweden and the Baltic State.

“The greatest threats to the banks in the long term will be the length and depth of the economic slowdown,” said Finansinspektionen’s chief economist Tomas Flodén.