No provision for financial risks 2024
News For the financial year 2024, the Riksbank is expected to make a profit of just over SEK 30 million, while the Riksbank’s equity is expected to amount to SEK 23 billion after the appropriation of profits. Equity is low in relation to the target level (SEK 63 billion) set out in the Sveriges Riksbank Act and it is therefore the profits should continue to be used to build up equity. The Riksbank has decided not to make any financial risk provision for 2024.
Equity is the Riksbank’s primary risk buffer as it can absorb all risks and losses, unlike a risk provision that is limited to specific risks or losses. Equity is currently low in relation to the target level under the Sveriges Riksbank Act. The Riksbank therefore deems that building up equity meets the need for consolidation better than making a risk provision.
All in all, no financial provisions are made for the financial year 2024. As there are no previously allocated funds, no reversals can be made and thus the reported provisions for 2024 are unchanged compared to the financial year 2023.