Swedish banks are linked in a highly concentrated network, a new economic commentary published by the Riksbank shows. The analysis, based on COREP data, maps the bilateral exposures among Swedish credit institutions and finds that the largest banks play a central role, acting as key intermediaries. Most of the interbank linkages arise from debt exposures, especially cross‑holdings of secured bonds. The concentration of these exposures means that several institutions rely on the same central actors, potentially amplifying the spread of financial shocks. The study highlights how high network density and concentrated dependencies can accelerate contagion between banks. Further research will examine foreign exposures and quantify the risk of contagion in the Swedish banking system.
Source: Sveriges Riksbank.
Data reproduced from https://www.riksbank.se/ (open data).
Open data, freely available.
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