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The government is prepared to act if the American banking chaos were to spread to Sweden.
But now Financial Markets Minister Niklas Wykman (M) calls on banks and other players in the financial market to be vigilant.
– It is important to be on your toes and follow this closely, he says.
A dramatic weekend in the American financial market has had consequences all the way to Sweden.
On Monday, the pension giant Alecta was called up to the Financial Supervisory Authority after losing 12 billion.
– We cannot rule out accidents occurring in the financial system, but then there is a preparedness to deal with them, says Financial Markets Minister Niklas Wykman.
The majority of Alecta’s customers are not affected by the giant loss. But the government does not rule out that the American banking chaos could spread to Sweden.
– But we follow this very closely, hour by hour. So far, we see no spillover effects that threaten the Swedish financial system and stability here, but it is important to be on our toes and follow this closely, he says.
The Swedish system has strict rules for liquidity and interest rate risks in banks, which Niklas Wykman highlights as something good.
– But it is not possible to rule out any risks when entering an economic environment like this. Investments that were previously profitable are no longer so, loans that were previously relatively safe are no longer so.
May lead to new rules
Sweden’s regulatory framework for the financial system was partly created after the financial crisis in 2008. Whether new rules will be needed is currently difficult to say, according to Wykman.
– But Sweden is in a much better position now than in 2008, and now there is a regulatory framework in place and they are the ones we must use.
How do you see the risks Alecta has taken by investing in niche banks such as cryptocurrency, do the rules need to be revised?
– It is sad for Alecta’s customers that they are affected by this. So far, as far as we know, only a small part of Alecta’s local assets are damaged by this. And otherwise, I don’t want to review an individual company.
You don’t see that there needs to be a clearer regulatory framework to make that type of investment?
– It can never be ruled out, but it is too early to draw any such conclusions now.
The call: Act carefully
Recently, several banks just distributed money to their owners. Niklas Wykman is careful to point out that he also does not want to review the decisions of individual banks.
– But as I said before, in this situation when we are moving from a low interest rate environment into a normalization with higher interest rates, it is important for all actors in the economy to act with care and caution.
The crash of the niche banks has caused the US government to act. Normally, the deposit guarantee in the US has been 250,000 dollars – but already over the weekend the US government announced that those who lost money will get it back.
It is currently difficult to predict whether the government would take similar measures in a similar situation in Sweden.
– In crises, you have to act to reduce its effects. It is not possible to say in advance how a crisis will arise, and it is necessary to have margin and preparedness to handle it, says Niklas Wykman.
As a private person, he thinks that you should be vigilant when it comes to your assets.
– The Ministry of Finance, our authorities and the Riksbank must be on their toes in these matters. Fundamentally, there is a resilience in the financial system.