U.S. bank woes no threat to Swedish financial system, watchdog says

OSLO, March 13 (Reuters) – The latest collapse of some U.S. banks, together with Silicon Valley Financial institution (SVB) , doesn’t threaten Sweden’s monetary stability, the nation’s monetary watchdog mentioned on Monday.

The Monetary Supervisory Authority mentioned in a press release it was in shut contact with Swedish insurers, banks and pension suppliers to get a greater understanding of their publicity to distressed U.S. banks.

“Our evaluation is that none of them have any massive direct publicity of their very own to the U.S. banks which have run into issues,” it mentioned.

Whereas the U.S. banking market was hit by a level of turbulence, Swedish banks are regulated extra tightly to make sure liquidity buffers are in place and stability sheets are protected, it added.

“Our evaluation is … that the soundness of the Swedish monetary system just isn’t affected by this,” it mentioned.

A minimum of one Swedish pension agency, nonetheless, misplaced cash within the collapse of SVB and Signature Financial institution (SBNY.O). Alecta has invested some 12 billion crowns ($1.1 billion), akin to round 1% of property beneath administration, within the banks.

“Alecta now values the shares within the two banks at zero,” it mentioned in a press release, including that the impact on Alecta’s clients could be small and its personal monetary place was “very sturdy”.

Swedish funding agency Kinnevik mentioned individually a restricted variety of firms it invested in have been uncovered to some extent and that it made obtainable short-term funding to make sure no materials enterprise disruptions occurred.

Sweden’s Monetary Markets Minister Niklas Wykman mentioned the federal government was following developments rigorously.

“To this point we don’t see any unfold of the results into the Swedish monetary system,” he informed Reuters.

“By way of the broad financial system, it reveals that it is rather essential to have tight rules for the monetary sector … and that we’re ready for potential dangers that could possibly be realized.”

Reporting by Terje Solsvik and Simon Johnson, modifying by Anna Ringstrom, Niklas Pollard and Christina Fincher

: .