Framework for correspondent accounts in Swedish krona with the Riksbank

Introduction to the Riksbank’s correspondent banking activities

According to Chapter 6, Section 6 of the Sveriges Riksbank Act (2022:1568), the Riksbank may accept deposits in currency or gold from, among others, other central banks and international financial bodies, and participate in and charge fees for the settlement of payments to or from other central banks or international financial bodies. The Riksbank may also enter into agreements on obligations and rights relating to such payments.

In order to be able to assist in the payments referred to in the above-mentioned legal provision, the Riksbank provides accounts in Swedish krona to other central banks and international financial bodies. By doing so, the Riksbank acts as a correspondent bank for these organisations, which are thus the Riksbank’s correspondent customers. The accounts these correspondent customers hold with the Riksbank are known as correspondent accounts.

The ability to provide and manage correspondent accounts in a safe and reliable manner is a fundamental prerequisite for the Riksbank’s correspondent banking activities. Such correspondent banking activities are well-established among central banks and can be used both in normal circumstances and in crises to ensure that central banks and international financial bodies can make payments in connection with their commitments within the scope of the management of their gold and foreign exchange reserves or the work of safeguarding financial stability. As part of their correspondent banking activities, central banks may also process government or intergovernmental payments that fall under the responsibility of their own government or other governmental organisations.

To clarify the conditions for these activities and to conduct them in a safe, robust and efficient manner, the Riksbank has developed a framework that specifies under which conditions and according to which principles the Riksbank may provide and manage correspondent accounts.