Regulatory Alerts2026-06-25
Added · Updated
Large Banks Central to Financial Linkages and Risk Transfer
Sveriges Riksbank maps cross-border exposures of Swedish credit institutions using COREP supervisory data, revealing that large banks act as central hubs channeling concentrated Nordic debt exposures and interbank lending across borders. The analysis demonstrates that foreign exposures are heavily skewed toward a few key Nordic counterparties, with debt instruments dominating the volume and creating dense regional linkages that amplify shock transmission. Consequently, Swedish large banks play a dual role as major foreign counterparties and domestic intermediaries, making their systemically important position critical for safeguarding financial stability against external shocks.
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