Sweden's Riksbank has published an Economic Commentary finding that Swedish credit institutions have large and concentrated exposures to foreign financial institutions, with the major banks acting as the main cross-border hubs. Using supervisory COREP large-exposure data, the analysis concludes that the biggest Swedish banks occupy a central position both in transmitting risks from abroad and in passing them through the domestic banking network, making them critical channels for potential contagion. The study covers 109 Swedish credit institutions over 2021Q2 to 2025Q3 and finds average foreign exposures of SEK 440 billion, equal to 40 per cent of the combined value of domestic and foreign exposures. Foreign exposures are concentrated in the Nordic region, with Denmark, Norway and Finland accounting for 60 per cent of the total. Small and medium-sized banks are mainly exposed within the Nordic region and the European Union, while the large banks have a broader global footprint. Debt instruments dominate these exposures, accounting for most foreign links across all bank categories, and six identified foreign counterparties account for about half of the Swedish banking system's total foreign large exposures, or around SEK 222 billion. The three large Swedish banks also rank as the institutions with the largest foreign exposures and the largest exposures to these key foreign counterparties. The commentary is the second step in a broader Riksbank research project on financial interconnectedness. Future work is expected to include a deeper quantification of potential contagion risk within the Swedish banking system.
Riksbank2026-06-25
Sweden's Riksbank analysis highlights concentrated foreign exposures at major banks
Sweden's Riksbank has published an analysis showing that Swedish banks' foreign exposures are large and concentrated, with the major banks serving as the main channels for cross-border and domestic risk transmission. Average foreign exposures total SEK 440 billion, with 60 per cent concentrated in Denmark, Norway and Finland and about half linked to six key foreign counterparties. The Riksbank said future work will quantify potential contagion risk in the Swedish banking system.