Erik Thedéen at the Committee on Finance: An uncertain environment requires a high level of preparedness
"In this serious geopolitical situation, we need to strengthen the preparedness of the entire financial system, and it is of great importance to work to increase resilience to cyber attacks, among other things." This comment was made by Riksbank Governor Erik Thedéen today when he took part at the Committee on Finance's open hearing on financial stability, together with Niklas Wykman, Minister for Financial Markets, Daniel Barr, Director General of Finansinspektionen, and Karolina Ekholm, Director General of the Swedish National Debt Office.
Date: 06/02/2024 09:00
Speaker: Governor Erik Thedéen
Place: Riksdag Committee on Finance
Mr Thedéen emphasised that resilience in the financial system is continuously improving, but not at the same rapid pace as the changing threat landscape. The Riksbank coordinates tests of the cyber security of financial actors (TIBER tests). These have identified deficiencies and this has also led to a lot of work being done to remedy these and thus strengthen protection against cyber attacks.
"We need to be proactive in managing cyber risks. A recent example of the importance of strengthening resilience is the recent cyber attacks that have affected several organisations and companies," said Mr Thedéen, and also emphasised that the new Cybersecurity Centre (NCSC) has a very important role to play.
The Riksbank's new regulations help to increase preparedness
Disruptions in the payment system risk affecting financial stability. The Riksbank has a statutory responsibility for ensuring that the public can continue to make payments during peacetime crisis situations and in a state of heightened alert. The Riksbank has therefore drawn up regulations that make demands on the companies that are of particular importance in the field of payments, including the major banks, Getswish and agents in cash handling.
To increase resilience and reduce vulnerability, it is important to have access to multiple payment methods. "As a private individual, it is important to have cash at home, preferably in smaller denominations. Moreover, the Riksbank considers that traders providing essential goods and services, such as food, fuel and pharmacy products, should as a general rule be legally obligated to accept cash” continued Mr Thedéen.
The major banks should ensure they have good margins above the capital requirements
The geopolitical turmoil, highly leveraged property companies and the high level of private debt in Sweden mean that the risks in the financial system are elevated.
"Banks should take into account this uncertain economic environment. The Riksbank therefore considers that the major banks should for the time being aim to have a margin down to the formal capital requirements that is not less than the upper limit set by the banks themselves for their management buffers,” said Mr Thedéen.