Riksbank's Jansson: Banks' Foreign Borrowing A Risk - Report
First Published Thursday, 15th March 2012 07:51 am - © 2012 Dow Jones
STOCKHOLM -(Dow Jones)- Swedish banks are dependent on funding in foreign currencies and this creates risks for the wider economy, Swedish Central Bank Deputy Governor Per Jansson said, Swedish daily Dagens Industri reports Thursday.
"If the banks should run into short-term liquidity problems the Riksbank can always provide them with unlimited amounts of Swedish kronor, but not with foreign currency. All else equal, that means bigger risks for the wider economy," the daily cites Jansson as saying.
Swedish banks should consider how they can finance their operations in a robust and stable manner, Jansson added.
Noting that Sweden's major banks didn't make use of the European Central Bank's recent three-year loan offer, Jansson said it was a good thing if Sweden's banks were strong enough not to require such support measures, according to the daily.
Newspaper website: www.di.se