The Riksbank’s measures during the financial crisis protected financial stability
News, Riksbank studies During the financial crisis, the Riksbank took a number of measures to limit the financial consequences for the Swedish financial system and to protect financial stability. A new Riksbank Study gives a detailed chronological description of the course of events in 2007–2010.
During the crisis, the Riksbank granted extraordinary loans in Swedish kronor and US dollars to the Swedish banking system, provided emergency liquidity assistance to individual institutions (Carnegie Investment Bank AB and Kaupthing Bank Sverige AB) and limited the spread of the crisis through swap agreements with a number of neighbouring countries (Iceland, Estonia and Latvia).
The study gives an account of the crisis measures the Riksbank implemented in 2007–2010. It describes the Swedish financial system and explains how the crisis spread to Sweden, the Riksbank’s role and how the Riksbank reasoned when decisions were taken. The study also describes the lessons the Riksbank has learned from the crisis. The study complements previously published articles on how the Riksbank handled the crisis.