The Swedish Financial Supervisory Authority will carry out an in-depth analysis of how smaller banks design their internal liquidity stress tests. The review is intended to give the supervisor a clearer picture of the assumptions, stress scenarios and methodological choices banks use, and of how test results feed into firms’ liquidity management. The analysis will cover the scenarios and assumptions applied, how liquidity risks are measured under different stress scenarios, and how the results are used in practice. It will examine a selection of about 10 smaller banks. The authority said the exercise is aimed at improving its understanding of how banks identify and measure liquidity risk in stress testing and of the similarities and differences across firms. The review is being conducted as part of the authority’s supervisory work. Such in-depth analyses are used to gather more information or better understand a specific issue or phenomenon, normally across several firms at the same time.
Finansinspektionen2026-07-02
Swedish Financial Supervisory Authority to conduct in-depth review of smaller banks internal liquidity stress tests
The Swedish Financial Supervisory Authority will review how about 10 smaller banks design their internal liquidity stress tests. It will examine the assumptions, stress scenarios, liquidity risk measurements and use of results in liquidity management to build a clearer supervisory picture across firms.