This has contributed to the banks’ net claims on the Riksbank having increased by almost SEK 50 billion over the past ten years, which has means that we have gone from having a monetary policy claim to a monetary policy liability. The Riksbank has reintroduced a portfolio in Swedish krona On the asset side, we now also have a portfolio of Swedish government bonds in Swedish krona. Let me just comment here on why we have once again acquired a securities portfolio in Swedish krona. Most central banks have a securities portfolio in their own currency. The Riksbank also had such a portfolio during the 1990s and this consisted mainly of government bonds, as well as a minor holding in treasury bills and mortgage bonds. In 4  BIS central bankers’ speeches  2001, the portfolio was transferred to the Swedish National Debt Office. In autumn 1999, The Riksbank’s market commitment repo facility was transferred to the Swedish National Debt Office and the assessment was made that a domestic securities portfolio at the Riksbank would not fulfil any important monetary policy function. However, the experiences of the financial crisis 2008–2009 show how important it is to be able to quickly implement measures beyond the ordinary measures used by a central bank to implement monetary policy. During the crisis the Riksbank took several extraordinary measures to improve the functioning of the financial markets and the monetary policy transmission mechanism. Other central banks implemented similar measures.
I have also tried to show how this affects the bank’s capacity to make a profit. Some changes are the result of active decisions by the Riksbank. Decisions the Riksbank has made as a preventive measure to be sufficiently prepared to manage a changed situation. I am of course mainly thinking of the reinforcement of the foreign currency reserve here, but also the decision to acquire a portfolio of Swedish securities again. Other changes, such as the decline in the use of cash and international interest rates, are beyond the Riksbank’s control. BIS central bankers’ speeches  9  Changes in the Riksbank’s balance sheet will lead to the bank’s profits slowly shrinking. We must therefore consider more carefully than before how we can best fund our assets. The expected rise in interest rates has a much greater effect on the bank’s profits in the short term, but on the other hand the effect is temporary. Although there is no lack of challenges, the Riksbank is financially strong. This is important to be able to perform our task in the best possible way. The bank has substantial equity, which may well be needed if the Riksbank is forced to adopt unconventional methods to bring up inflation. Finally: Does the Riksbank have to make a profit? Yes, it does actually. We must be able to cover our costs. And we must be able to build up buffers.