Swedish Financial Supervisory Authority (Finansinspektionen): Swedish Banks Tackling Current Market Turmoil

The Swedish banks have managed relatively well in the turbulence prevailing on the financial markets, according to the report on the risks and threats to stability in the Swedish banking sector that FI is publishing yesterday.

The Swedish banks have managed relatively well in the international turbulence prevailing on the financial markets. The four major banks made record profits in 2007 and they all have good financial strength.

The risks that FI pointed out in the autumn’s stability report to the Government remain. These refer to the situation on the financial markets, business cycle effects and the development in the Baltic region.

Although these risks are relatively serious, no individual risk is considered to pose a threat to the stability. FI continues to closely follow the development.
The major banks’ operating profits for 2007 amounted to a record high SEK 84 billion, according to FI’s Credit Market Barometer which will also be published today. It contains figures for the bank sector through Q4 2007. As yet, the turbulence has not led to any rising credit losses for the major banks. During 2007, the major banks’ credit losses before recoveries declined by nearly SEK 200 million.

These reports are available at: www.fi.se
Market turbulence and the Swedish banks (only available in Swedish)
The Credit Market Barometer (only available in Swedish)

At www.fi.se assessments of the fund and insurance sector are also available:
Market turbulence and Swedish funds, published on 8 February 2008 (only available in Swedish)
Pension companies financially prepared, published on 21 February 2008