The crashes for niche banks in the US have caused concerns about a new financial crisis to spread across the world and, according to several experts, there is a risk of spillover effects. There are still no signs of such a horror scenario, says SVT’s economic commentator Alexander Norén.
– But it is the concern that it is still on the map that creates this bank torrent, he says.
IMF: Keep an eye on Swedish banks
The IMF states that Swedish banks do have plenty of capital, but that a weakness is the large exposure to the real estate market. Above all, the IMF points to lending to the commercial real estate sector, which finds it tough when interest rates rise.
The conclusions were presented on Thursday in a report on the state of the Swedish economy. The IMF urges the Swedish authorities to keep an extra eye on the banks and mortgages. The IMF also expects that growth in Sweden will slow down in the future due to higher energy prices, tighter financial conditions – and falling housing prices.
– After they crashed the American banks now all the world’s banks seem extra careful at the seams, says SVT’s economic commentator Alexander Norén.
Hear Alexander Norén in the clip above about the banking frenzy and the risks of a new financial crisis.
