Corona pandemic increasing risks to financial stability
The corona pandemic has had serious consequences for the global economy. Around the world, powerful measures have been implemented to mitigate the effects on the real economy and reduce turbulence on financial markets. In Sweden, too, the Government, authorities and the Riksbank have together taken powerful measures. The Riksbank’s assessment is that the Swedish financial system is functioning satisfactorily for the time being. But if the crisis becomes prolonged, the risks to financial stability will increase. Without further economic policy measures, credit losses in the banking sector then