Banks in Sweden Told to Add Risk Weights to Government Bonds
- Sovereign debt holdings need to reflect market reality: FSA
- Swedish FSA says it couldn't wait for EU to complete review
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Sweden has told its banks to stop pretending all government bonds are safe.
With Greece on the verge of bankruptcy numerous times over the past five years, the cat’s out of the bag: it is possible to lose money on sovereign debt. That means banks should no longer be free to operate as though that weren’t the case, according to Sweden’s Financial Supervisory Authority.