RTTNews - Tuesday, the Financial Stability Report from the Riksbank said the loan losses of major Sweden banks would increase over the coming years and the loan losses in 2009 and 2010 would total SEK 170 billion. According to the central bank, just below 40% of these losses are expected to stem from the bank groups' operations in the Baltic nations and the rest of Eastern Europe
However, Governor Stefan Ingves said the banks have sufficient capital to meet losses of this size and are well-capitalized in an international comparison.
The central bank carried out a stress test and found that even under the very difficult conditions assumed in the test, the Swedish banks manage to meet the statutory capital adequacy requirement of 4%.
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