Ingves Says Sweden Should Consider Combining Riksbank With FSAJohan Carlstrom
Riksbank Governor Stefan Ingves said Sweden should consider eventually combining the country’s central bank and the Swedish Financial Supervisory Authority.
“It’d be good if we looked at that issue,” Ingves told reporters in Stockholm today. “It concerns the issue how we conduct an effective supervision and how we pool the resources within the public sector that deal with these issues.”
Ingves earlier today argued that the Riksbank should have the sole responsibility for macro-prudential policy, or the task of limiting systemic risks, in Sweden. A government-appointed committee has proposed that the regulator and central bank should share oversight of a new regulatory framework aiming to prevent future financial crises. The watchdog has opposed such a move, warning against dividing supervisory tools related to capital and liquidity rules between different authorities.
While the FSA has nothing against giving other authorities responsibilities to make the financial system more stable, liquidity and capital requirements should be the responsibility of the regulator as should decisions about the future counter-cyclical capital buffers for banks, it said on May 23.
It’ll take “several years” before a combined agency could become a reality, Ingves said. “It would be good because these are very complicated issues and we need close collaboration.”