CAN LOW RISK IN THE SWEDISH BANKING SECTOR PAY IN THE LONG RUN?
Banks are normally heavily indebted with equity levels of 5-10 percent of total assets or even lower. The assets consist mainly of short-term and long-term loans, funded by deposits which can be withdrawn at short notice. In order to avoid excessive withdrawals, which is called a bank run, deposit insurance systems, guaranteed by the state, are generally in operation. The financial sector is chara
