Governments, central banks, and authorities around the world have taken powerful measures to mitigate the economic impact of the coronavirus pandemic. These measures also helped dampen uncertainty on the financial markets. By utilising available buffers and continuing to lend to firms and households, the financial sector can dampen the impact of the crisis. It is also important to remember that the economic crisis is not over, and uncertainty is therefore high, notes Finansinspektionen (FI) in its first stability report of the year.
FI’s Stability Report will be published today at 8:00 AM at fi.se, and the conclusions of the report will be presented by Director General Erik Thedéen and Chief Economist Henrik Braconier at a live-broadcast press conference at 10:00 AM.
“In a worst-case scenario, the crisis can be deep and protracted. How the situation will develop is difficult to predict, but the measures that the government, the Riksbank, and Finansinspektionen, among others, have taken during the initial phase have stabilised the financial system,” says Erik Thedéen.
The important lessons learned from previous crises are to have margins, buffers and resilience. This does not prevent the shocks from occurring, but resilience makes it possible to better handle even heavy stresses. This applies more or less to all areas of society, but perhaps to the financial sector in particular, writes FI.
The banks should safeguard their resilience in these uncertain times by not issuing dividends. This will enable them to continue to lend to firms and households – thus dampening the after-effects of the crisis – and still be equipped for future challenges.
Time and date: Thursday, 4 June, 10:00 a.m.
Location: Finansinspektionen, Brunnsgatan 3, Stockholm.
The press conference is only for representatives from the media, but will be broadcast live on FI’s website, fi.se.
Practical information regarding the press conference
Due to the COVID-19 virus, the following applies to visitors to FI:
- You must be completely healthy and symptom-free for at least two days.
- You must not have interacted with anyone who has been confirmed as being infected with the virus.
- You must not have travelled abroad in the past two weeks.
Thank you for your cooperation.