## Sweden: Financial Sector Assessment Program Update: Technical Note on Stress Testing of the Banking Sector

_IMF Staff Country Reports, September 16, 2011_

## Source details

**Canonical URL:** [Sweden: Financial Sector Assessment Program Update: Technical Note on Stress Testing of the Banking Sector](https://www.imf.org/en/publications/cr/issues/2016/12/31/sweden-financial-sector-assessment-program-update-technical-note-on-stress-testing-of-the-25243)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/sweden-financial-sector-assessment-program-update-technical-note-on-stress-testing-of-the-25243/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/sweden-financial-sector-assessment-program-update-technical-note-on-stress-testing-of-the-25243/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/sweden-financial-sector-assessment-program-update-technical-note-on-stress-testing-of-the-25243/bundle-manifest.json)

## Bibliographic details
- Published: September 16, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781463903596.002

---

### Summary
- Although Sweden has recovered from the financial crisis, authorities have already initiated exit measures from crisis response policies.
- The Financial Sector Assessment Program (FSAP) Update undertook a financial stability analysis of the banking sector, including a comprehensive stress-testing exercise of banks’ solvency and liquidity positions.
- While the banking sector appears resilient to credit risk stress tests, liquidity stress test results reveal some weaknesses owing to its heavy reliance on wholesale funding.
- Swedish bank groups have extensive cross-border activities, mostly in the Scandinavian and Baltic regions.

### Key findings from the stress-testing exercise
- Comprehensive stress tests covered both solvency and liquidity positions of banks.
- Credit risk stress tests indicate that the banking sector appears resilient.
- Liquidity stress tests reveal weaknesses attributable to heavy reliance on wholesale funding.

### Structural and cross-border considerations
- Swedish bank groups have extensive cross-border activities, mostly in the Scandinavian and Baltic regions.

---

## Content in this bundle

- **_cr11288**
  - [_cr11288 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11288.pdf.md){rel="alternate" type="text/markdown"}
  - [_cr11288 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11288.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/sweden-financial-sector-assessment-program-update-technical-note-on-stress-testing-of-the-25243_