The Riksbank’s role and tasks
According to the Instrument of Government, the Riksbank is Sweden’s central bank and an authority under the Riksdag, the Swedish parliament. According to this law, the Riksbank is responsible for monetary policy. The objective of the Riksbank’s monetary policy is to maintain price stability. According to the Sveriges Riksbank Act, the Riksbank also has the task of promoting a safe and efficient payment system.
The Sveriges Riksbank Act does not describe in detail what is meant by promoting a safe and efficient payment system. However, it is clear that the Riksbank has a responsibility for the supply of cash and for supplying a central payment system. A safe and efficient payment system requires a stable financial system so that payments and the supply of capital function smoothly. Therefore, the Riksbank, like other central banks, must also be able to manage financial crises and other serious disruptions in the financial system. In this respect, the Riksbank plays a special role as Sweden's central bank, because it can quickly supply money to the financial system if the need arises.
What does the task entail in practice?
The Riksbank’s practical work on safeguarding financial stability consists of several different tasks, namely:
- issuing banknotes and coins,
- ensuring that there is a robust and efficient central payment system – which banks and other agents can use to make payments,
- gathering and analysing information about the financial system and promulgating information and knowledge about it (to the public and banking sector?),
- analysing and supervising developments in the financial system and the economy as a whole,
- mitigating threats to financial stability by informing of, and warning against, risks that are building up,
- strengthening the financial regulatory framework so that it contributes to stability and efficiency,
- managing a financial crisis, if one should arise.
See also the publication The Riksbank and Financial Stability.
