No Collapse in Sight
Their large investments in the Baltic countries could hand the Swedish banks a heavy bill to pick up. However, the latest report by the Swedish Financial Supervisory Authority says that the banks are unlikely to actually go under.
In their so-called 'stress test' published on Wednesday the Authority says that the big Swedish banks, such as SEB, Swedbank and Nordea can withstand losses of almost 20 billion US dollars in the Baltic countries over three years. This means they are not required to raise more capital as protection.
However, the Authority warned that in a worst case the losses might reach as much as 45 billion US dollars, in which case only Handelsbanken would escape losses.