The banks are better equipped to meet future loan losses
The Riksbank’s assessment is that the major banks’ resilience has improved. The financial markets have begun to function better and the recession appears to have bottomed out. Loan losses in the bank system are therefore expected to be lower than was assessed in June. At the same time, future developments are uncertain and the risks are still considerable. However, the banks have sufficient capital to meet larger losses than in the main scenario. This is the conclusion of the Riksbank in its Financial Stability Report, which is published today.Since the previous Financial Stability Report