STOCKHOLM--Sweden's government said Monday that it intends to propose a series of new measures to enhance financial stability, with responsibility for the new tools handed to Finansinspektionen, the Financial Services Authority.
The measures will see a tighter framework, tougher rules for banks, greater funding to build foreign exchange reserves as well as the formation of a Financial Stability Council.
"Financial crises can have serious negative consequences for the economy," a statement from the Finance Department said.
"The Swedish economy is more exposed to financial risks than other countries with one of the largest banking sectors in relation to GDP and a relatively high household indebtedness," the government added.
"This makes the need for resilience even greater. Despite the reforms already undertaken, there is therefore a need for further action to secure stable banks and a stable financial system."
With the new measures, Sweden hopes it's economy will become more resilient and reduce the risk of financial crises, increasing unemployment and weakening public finances.
nasdaq.com
The measures will see a tighter framework, tougher rules for banks, greater funding to build foreign exchange reserves as well as the formation of a Financial Stability Council.
"Financial crises can have serious negative consequences for the economy," a statement from the Finance Department said.
"The Swedish economy is more exposed to financial risks than other countries with one of the largest banking sectors in relation to GDP and a relatively high household indebtedness," the government added.
"This makes the need for resilience even greater. Despite the reforms already undertaken, there is therefore a need for further action to secure stable banks and a stable financial system."
With the new measures, Sweden hopes it's economy will become more resilient and reduce the risk of financial crises, increasing unemployment and weakening public finances.
nasdaq.com
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