Financial Stability Report 2020:1

The corona pandemic has had serious consequences for the global economy. Around the world, powerful measures have been implemented to mitigate the effects on the real economy and reduce turbulence on financial markets. In Sweden, too, the Government, authorities and the Riksbank have together taken powerful measures. The Riksbank’s assessment is that the Swedish financial system is functioning satisfactorily for the time being. But if the crisis becomes prolonged, the risks to financial stability will increase. Without further economic pol-icy measures, credit losses in the banking sector then risk increasing to such an extent that banks may have problems maintaining credit supply. The Riksbank is ready to contribute by providing the necessary liquidity.