Sweden’s Banks, Freddie Libor Suit, Cyprus: Compliance

Swedish regulators should consider raising risk weights on mortgage assets above the 15 percent proposed last year to help the industry pad itself against potential losses, Riksbank Governor Stefan Ingves said.

While existing plans to impose stricter bank rules have strengthened Sweden’s financial system, there remain “several areas that require further examination,” Ingves said yesterday in a speech in Stockholm. These include banks’ ability to meet short-term liquidity needs, as well as whether lenders should cover costs incurred by the central bank to hold foreign reserves needed to shield the industry from currency risks, he said.