The Riksbank's activities in 2008 were marked by the financial crisis
Date
09/02/2009
The Riksbank's net income in 2008 increased by SEK 7.1 billion to SEK 11.2 billion. The increase is partly due to the measures taken by the Riksbank in connection with the financial crisis and partly to developments on the currency and interest rate markets during the year. This can be seen in the Riksbank's annual report, which was submitted to the Riksdag (the Swedish parliament) today.
"2008 was a very eventful year. The spring and the summer were marked by substantial increases in energy and food prices and inflation reached its highest level for 15 years. In the autumn, however, there was a turnaround when the effects of the US financial crisis began to spread and had an unexpectedly serious impact in Sweden too. The course of events at home and abroad required a very rapid and flexible response from all the departments of the Riksbank," says the Governor of the Riksbank, Stefan Ingves, in his comments on the Riksbank's annual report 2008.
The annual report includes a review of the measures taken by the Riksbank to establish the conditions required for long-term macroeconomic and financial stability and to improve the functioning of the financial markets. The Riksbank also reports on the effects of its monetary policy work and describes the results of the work on its other assignments during 2008. The annual report also contains the Riksbank's profit and loss account and balance sheet.
The measures taken in connection with the financial crisis contributed to an increase in the Riksbank's balance sheet from SEK 212 billion in 2007 to SEK 700 billion in 2008. The Riksbank's net income also increased and amounted to SEK 11.2 billion at the end of the year. Total net income was partly affected by the fact that the Riksbank increased its borrowing to the Swedish banks in connection with the financial crisis in the autumn, which led to an increase in net interest income. Exchange rate and interest rate effects also contributed positively to the increase in net income.
The Riksbank will publish an English version of the annual report on 30 March 2009.