1. Financial Stability Report May 2011

2. The banks’ resilience has improved

3. …but there is still considerable uncertainty

4. Loan losses expected to be low
Aggregated over four quarters. SEK billion. Fixed prices March 2011.
Sources: The banks’ reports, SME Direkt and the Riksbank

5. Lending to households and companies
Annual percentage change
Source: Statistics Sweden

6. Fiscal unease Greece Ireland Portugal Spain
Yields on ten-year government bonds. Per cent.
Source: Reuters, EcoWin

7. High dependence on events abroad
The major Swedish banks’ market funding via Swedish parent companies
and subsidiaries. SEK billion
Sources: Statistics Sweden and the Riksbank

8. The banks are well-capitalised in an international perspective
Core Tier 1 capital ratios according to Basel II. December Per cent.
Sources: The banks reports and the Riksbank

9. The banks can manage a much poorer outcome
Solid columns refer to core Tier 1 capital ratio according to Basel III based on the Riksbank’s estimates. The striped columns refer to the core Tier 1 capital ratio according to Basel II. March Per cent
Source: The Riksbank

10. The banks’ liquidity risks
The survival period for Swedbank, Nordea, Handelsbanken and SEB compared with the average for a sample of European banks. Number of months.
Sources: Liquidatum and the Riksbank

11. The banks should retain or increase their capital ratios
The banks have increased their core Tier 1 capital ratio somewhat
Fiscal unease
Reasons for higher capital adequacy requirements than Basel III

12. The banks should reduce their liquidity and funding risks
The banks have begun a transition to longer term funding
Large dependence on short-term market funding

13. The banks should improve their public liquidity reporting
The banks’ public liquidity reporting is still inadequate
The banks should publish their liquidity risk once a month
The banks should publicly report maturities and currency breakdowns for their assets and liabilities

14. Assessment of stability
The banks’ resilience has improved… …but there is still considerable uncertainty