Riksbank's risk survey spring 2010

Date 26/05/2010

The assessment of the participants in the Swedish fixed-income and foreign exchange markets in March and April was that the sovereign debt problems in Europe constituted a high risk to the financial markets in both the long and short run. The participants also believed that the financial crisis peaked between autumn 2008 and spring 2009. According to the participants, most submarkets were functioning more effectively than in the autumn. This is revealed by the Riksbank's risk survey for spring 2010.

 

40 per cent of the participants questioned in the survey state that the financial markets are still not functioning normally, although the majority perceive the situation on the Swedish fixed-income and foreign exchange markets to have improved further during the past six months. The participants expect that new regulations, with stricter regulations regarding capital- and liquidity requirements, will be one of the lasting effects of the financial crisis. An increased risk awareness and risk management are also expected to be lasting effects. All in all, this could reduce the economy's potential growth rate. However, the participants also believe that the Riksbank’s monetary policy will be in focus over the coming six months and that the greatest risk in both the short-term and the long-term is how the sovereign debt problems in southern Europe develop.

 

Since spring 2008 the Riksbank has carried out its own twice-yearly survey of participants in the Swedish fixed-income and foreign exchange markets. The questions in the survey refer to the participants’ views on risk and also to their opinions regarding the functioning of the markets. The Riksbank’s risk survey for spring 2010 was conducted in March and April.