IMF Staff Country Reports

This technical note discusses Sweden’s Oversight and Supervision of Financial Market Infrastructures and Selected Issues in Payment Systems. Digitalization of payments has been rising steadily in Sweden. In addition to the continuous digitalization of payments, Sweden is undergoing a major overhaul of its payment infrastructure. Outsourcing of critical services to private companies is widespread and is going to increase in the Swedish financial sector. The review results of responsibilities suggest an effective supervision and oversight framework supported by sound legal basis, sufficient resources, and proper domestic and foreign cooperation between the authorities. The authorities should establish cooperative oversight and supervisory arrangements with P27 participating countries. While joining the Eurosystem operated platforms will bring obvious benefits for Swedish financial sector, it may also create challenges related to governance, risk management, representation of Swedish interests and oversight. The authorities are encouraged to establish and maintain a central register of critical service providers and outsourced third party arrangements.