Banks can withstand prolonged pressure
PRESS RELEASE
All of the big banks can withstand extreme pressure in the coming period. This is the assessment of Finansinspektionen following its stress tests. The major Swedish banks can withstand credit losses in the Baltics exceeding SEK 150 billion over a three-year period, according to Finansinspektionen’s most negative stress test.
There is currently no need for any of the big banks to strengthen their capital adequacy based on the regulatory requirements. However, in extreme scenarios the market will most likely require a higher level of capital, which can place pressure on financing possibilities for banks that are most affected.
The future continues to be highly uncertain and the banks must have good capital preparedness, even for improbable scenarios. Good capital preparedness means that the banks should have concrete plans for improving their capital adequacy within a reasonable period of time. FI believes that the major Swedish banks currently possess this level of preparedness.
