This is a lesson we learned from the Swedish banking crisis of the early 1990s 11 – and a lesson that proved useful during the crisis of 2008–09. 12 How we communicate is, however, something that we need to work on and develop constantly. At present, we are trying to improve our communication concerning our assessments of the risks in the financial system. Not least, we want to be even clearer about how we want the banks and other financial agents to respond to these assessments. We are therefore currently developing ways and means of presenting our recommendations to the participants in the financial sector. From this it follows that we also need to review ways and means of following up the recommendations we have made. The recently-formed macroprudential council also means that we will be able to coordinate our communication with that of Finansinspektionen to a greater extent than before. Macroprudential policy needs clear mandates and effective tools The cooperation between the Riksbank and Finansinspektionen will probably lend greater weight to the communication of risks and countermeasures, which is good. But the new macroprudential council does not make any decisions on its own. The council will not alter the independence, responsibility and decision-making powers of the Riksbank and Finansinspektionen. Consultating and “communicating” risks are all very well, but in the long term we probably need something more than an advanced forum for discussion. This is why I believe that the macroprudential council is only a temporary solution.
A council for cooperation on macroprudential policy How Sweden should best organise macroprudential policy for the financial system is one of the – very difficult – questions currently being addressed by the Financial Crisis Commission. While awaiting the report of the Commission and a future parliamentary decision on a longterm solution for a macroprudential policy framework we will have to try to make the most of the existing arrangements. It makes sense that a small country like Sweden should utilise the expertise and know-how that already exist at the Riksbank and Finansinspektionen. In January 2012, these two organisations set up a joint council for cooperation on macroprudential policy. The idea behind this council is that the authorities should consult and exchange information concerning their assessments of risks to the financial system as a whole, and discuss appropriate measures to prevent these risks. Another task will be to discuss the development of tools and methods in the area of macroprudential policy. The first meeting of the council was held on 24 February and the aim is that the council should meet at least twice a year. The minutes of the meeting are available on the websites of the Riksbank and Finansinspektionen. The intention is to publish the minutes of all the meetings. Great need for clear communication The publication of these minutes is an expression of the ambition to be open and transparent – an ambition that has become something of a trademark of the exercise of public authority in Sweden.