Swedes face tough stress tests

摘要

Swedish banks such as swedbank and nordea face a tougher macroeconomic picture than firms in other countries under Europe-wide stress tests, with lenders there facing far steeper falls in key indicators. Under the adverse scenario used by the european banking authority to sttess a bank's balance sheet and measure its possible impact on banks' capital levels, Sweden's gross domestic product is projected to fall as much as 10.2% and house prices to drop by 29%. The same adverse scenario for Spanish, French and Italian banks only projects drops in GDP of 5.9%, 6% and 6.1% respectively. The projections for all countries are based on the same model, but the structure of Sweden's economy and its high house prices have made the projected fall steeper.