Sweden’s Financial Supervisory Authority, the Finansinspektionen (FI), has said that the country should be insulated from the collapse of Silicon Valley Bank (SVB) and other US financial institutions.

In a statement, the FI said that “none” of the country’s insurers, banks and pension providers “have any large direct exposure of their own to the US banks that have run into problems."

The regulator added that it is in close contact with financial institutions in the country, and that the case is unlikely to impact Sweden’s financial stability.

Acting FI Director-General Susanna Grufma added: "Our assessment is however that the stability of the Swedish financial system is not affected by this.”

However, at least one Swedish pension firm, Alecta, looks to have lost around $1.12 billion as a result of the collapse of SVB and Signature Bank. The bank said that this would have “very little” effect on individual savers future pensions.

In comments to Reuters, Sweden's Financial Markets Minister Niklas Wykman reiterated the FI’s stated position. He said: “Up to now we do not see any spread of the effects into the Swedish financial system.

"In terms of the broad economy, it shows that it is very important to have tight regulations for the financial sector ... and that we are prepared for potential risks that could be realised."

Elsewhere in Scandinavia, Norway’s Finanstilsynet said that there is no indication that financial market players in the country have experienced any significant exposure to the ongoing US banking crisis.

Regulators around the world are scrambling to ensure the security of their financial institutions following the collapse of SVB last week which occurred after a run on the bank. HSBC has agreed a £1 deal to acquire SVB's UK business to secure the deposits of more than 3,000 customers worth over £6.5 billion.

Share Story: