Swedish central bank needs broad financial stability mandate

STOCKHOLM: Sweden's central bank should have a broad mandate on financial stability, central bank First Deputy Governor Kerstin af Jochnick said on Monday.

"It is desirable that the Riksbank has a broad task and the opportunity to use its instruments with sufficient flexibility to be able to help safeguard financial stability," she said in the prepared notes of a speech.

"It would be natural for the Riksbank's voice on liquidity issues to carry special weight," she said.

Swedish lawmakers are currently reviewing the central bank act. The main responsibility for financial stability currently lies with the Financial Supervisory Authority.