Riksbank throws banks another lifeline

Riksbank throws banks another lifeline
The Riksbank announced on Monday that it was increasing the credit it is making available to Sweden’s banks from 60 billion kronor ($8.3 billion) to 100 billion kronor.

An additional 100 billion kronor will be made available for auction on Wednesday, October 8th.

The additional injection brings the total liquidity supplied by the Riksbank to 354 billion kronor since the start of the current global financial turbulence.

“The Riksbank is now taking swift measures to facilitate the credit supply for the Swedish banks,” said Riksbank Governor Stephan Ingves.

“Together with the actions taken by the Swedish National Debt Office (Riksgälden), liquidity of more than 500 billion kronor is being supplied in different ways. The Riksbank is prepared to provide the liquidity necessary to safeguard financial stability and ensure the smooth functioning of the financial markets in Sweden.”

Ingves again emphasized that the current upheaval in global financial markets was “clearly affecting” Sweden and warned of the continued risk of “negative effects” on the credit supply to banks, companies, and individuals.