Economic Commentary: A systemic risk indicator for the Swedish banking system

In this Economic Commentary, the author presents a systemic risk indicator for the Swedish banking system. The indicator illustrates the probability of the four major Swedish banks becoming distressed at the same time. It shows that the systemic risk in the banking sector is currently somewhat increased. This is probably a reflection of the unease that has existed for some time in the financial markets as a consequence of the strained public finances in many places in the world. Even if the indicator at present shows a higher score than in 2006–2007 its value is still lower than was the case at the most acute stage of the 2008–2009 financial crisis.

Read the commentary via the link.