Coherent regulatory framework and clear division of roles between authorities
The General Council of the Riksbank and the Executive Board of the Riksbank propose in a joint submission to the Riksdag that one or several commissions of inquiry should be appointed to review the regulatory framework in the financial sector.
"It is important to have a coherent and effective framework in order to be able to prevent crises in the future, but also to limit the costs of a crisis to bank customers and society at large as much as possible," say the Chairman of the General Council, Johan Gernandt, and the Governor of the Riksbank, Stefan Ingves, in a joint statement.
The Riksbank proposes, among other things, that the Sveriges Riksbank Act should be reviewed in order to clarify the Riksbank's responsibility for financial stability and the tools that the Riksbank needs. It should be examined whether it should be explicitly stated in the Instrument of Government or the Sveriges Riksbank Act that the Riksbank has a responsibility for financial stability and, if so, how such a regulation would comply with the provisions of EU legislation.
A thorough analysis of how the present division of responsibilities and the coordination between the Riksbank and Finansinspektionen can be improved should also be performed. The division of responsibility between the Riksbank and the National Debt Office with regard to borrowing for the currency reserve also needs to be clarified. An effective regulatory framework governing how to handle banks with problems is also important.