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Financial watchdog warns bank over liquidity risk


Bloomberg said Sweden’s financial regulator signaled it may enforce measures requiring banks to address their liquidity risks and hedge against a potential funding freeze.

“I have to make it very clear that the structural liquidity risk, as a problem, is something that concerns us” and which “it is likely that we will do something to address,” Uldis Cerps, executive director for banking at the Swedish Financial Supervisory Authority, told the news bureau. “With respect to the short-term liquidity buffers, I think we in Sweden are happy with our reform agenda and its implementation.”

Last month, Moody’s Investors Services said Sweden’s banks “remain highly reliant” on market funding, with 58 percent of their total capital needs raised in the market.

 


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