Thedéen welcomes international discussion of lessons learned from recent problems in some US and Swiss banks

During the latest Eurofi conference in Stockholm, Mr. Erik Thedéen, Governor of Riksbank, the Swedish Central Bank, spoke about the efforts of the Central Bank to further contain inflation and about the recent bank failures in Switzerland and the U.S. With respect to the second issue, the Governor notes that he strongly welcomes the now raised discussions about prudential measures to protect against such failures and against the subsequent impacts on global financial markets. As experience has shown, so Mr. Thedéen, even the failure of small, less relevant institutions can have a significant contagion effect upon financial stability and other financial institutions‘. In fact, due to the highly interconnected banking system, the ability to effect financial payments within the blink of an eye, and the possibility to spread word (and rumors) within minutes on social media, it is well indicated to review the current prudential measures. Finally, the Governor notes that it is also essential to develop a (macro)prudential framework for non-banks financial market players to be prepared for any such situation.