Financial Supervision Authority's commentary on the effects of the US financial crisis on Estonian banks
The Financial Supervision Authority confirms that the current US financial crisis does not impinge on the Estonian financial market in a significant or systematic manner. The Financial Supervision Authority, in cooperation with the Swedish Financial Supervision Authority, finds that the problems of the US capital markets do not have a direct influence on the stability of the Swedish banking system, including the Estonian subsidiary banks of Swedish banks.
Over 90 % of Estonian financial sector has been formed by the parent companies or branches of the EU financial institutions, i.e. cross-border financial groups operating in Estonia. Thus the key issue for the adequate estimation of risks is cooperation with other countries, above all with the Swedish Financial Supervision Authority. Being integrated into Nordic Countries' risk assessment process of financial groups, the Financial Supervision Authority, together with its colleagues, charts the events taking place in the financial markets as to respond in a timely manner to any potential problems, as they arise.
"The positions of Swedbank Group in the US's fourth largest investment bank Lehman Brothers, does not affect the liquidity of Swedbank's Estonian subsidiary bank or customer's deposits. We firmly trust in the Estonian banking system. At the same time, in cooperation with the Swedish Financial Supervision Authority, we analyse banks' credit and liquidity risks on a daily basis, inasmuch as wider negative developments in the International Financial Markets present higher demands to Financial Supervision Authorities. Considering the general situation on the financial market, we are in constant contact with our colleagues," said Raul Malmstein, the president of the Financial Supervision Authority.