meta_id 3017915

On March 30, 2026, Sweden's central bank, Riksbank, announced it is conducting follow-up meetings with banks to monitor their adaptation to an environment with reduced liquidity surplus in the Swedish banking system. The liquidity in the Swedish banking system is declining as Riksbank's holdings of Swedish securities continue to decrease. The Riksbank's control system operates a narrow interest rate corridor system designed to function with varying amounts of central bank liquidity. As the liquidity surplus decreases, banks face increased requirements to borrow and lend to each other on the overnight lending market and, when necessary, to utilise Riksbank's lending facilities. To facilitate this transition, the Riksbank has implemented several measures: Increased transparency regarding banks' resale of Riksbank certificates. Improved information on liquidity surplus developments. Reduced interest rates on the supplementary liquidity facility. Removed restrictions on the proportion of secured bonds that can be used as collateral for loans from the Riksbank. The Riksbank has determined that limiting the issuance volume of Riksbank certificates would not facilitate banks' adaptation to lower liquidity levels. The central bank's weekly issuance of Riksbank certificates plays a central role in stabilising short-term market rates near the policy rate. Restricting issuance would leave more reserves in the banking system but would reduce banks' incentives to distribute reserves among themselves on the overnight market. Banks retain discretion over how much of their surplus liquidity to place in Riksbank certificates. If a bank requires more reserves than the overnight market can provide at reasonable terms, it can borrow from Riksbank's lending facilities or resell Riksbank certificates to Riksbank.