Swedish banks sail through EBA stress test

Sweden’s financial services regulator said in a statement this afternoon that the four big local banks Nordea, SEB, Handelsbanken, and Swedbank were well equipped to withstand any economic uncertainties.

Finansinspektionen (FI), the Swedish Financial Supervisory Authority said that these four banks managed the EBA’s stress test “by a good margin”.

“As with last year’s stress test, FI believes that the Swedish big banks have enough capital to handle even the most extreme pressures. They are also prepared to improve their capital cover in case the market in extreme situations should demand even higher levels of capital.”

The EBA stress tested banks’ resistance to a hypothetical situation stretching into 2012, in which they faced weaker economic growth, higher interest rates, falling stock markets and property prices, and losses from their trading portfolios.

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