No provision to the risk buffer 2021
News The financial risks on the Riksbank's balance sheet have increased in recent years. To strengthen resilience to potential future losses, the Riksbank can make provisions for financial risks. The Riksbank considers that the risk buffer needs to be strengthened by at least SEK 15 billion, but as the preliminary annual accounts for 2021 indicate that the Riksbank did not make any profit in 2021, the Executive Board has decided not to make any provision for financial risks in 2021.
In connection with the annual accounts, the Riksbank assesses the need for a risk buffer and provision, based on the risks on the Riksbank's balance sheet. In recent years, the Riksbank's holdings of securities and outstanding loans have increased, due to the monetary policy measures implemented to mitigate the effects of the coronavirus pandemic on the Swedish economy. This development means that the financial risks on the balance sheet have increased, while the Riksbank's equity and risk buffer have not increased at the same pace. The Riksbank can manage the increased risks, but to maintain equity capital that is compatible with financial independence in the longer run, it is appropriate to strengthen the Riksbank's risk buffer when possible.
The Riksbank considers that the risk buffer needs to be strengthened by SEK 15 to 40 billion to reduce the probability of the Riksbank's capital being too low. The risk buffer can be strengthened by making provisions when the Riksbank's result is positive or if the Riksbank is expected to pay a dividend to the State. The preliminary annual accounts for 2021 show that the Riksbank did not make any profit and the Executive Board has assessed that there is no scope for making a provision for 2021.