Monitoring systemic risks
The Systemic Risk Council is among other things tasked to identify and monitor systemic financial risks. The Council's current assessment of risks is stated in press releases published after each meeting of the Council. The method used to monitor systemic risks is described in a published note.
Financial crises affect the overall economy and welfare. The most recent financial crisis was the crisis that developed into a systemic crisis in the autumn of 2008. Within a short period of time, large parts of the global financial system collapsed, and together with the ensuing uncertainty the crisis resulted in a considerable loss of welfare.
Systemic financial crises must be expected to occur on a regular basis in the future as well. To prevent or reduce systemic financial risks that may put pressure on all or parts of the economic development. The Council is tasked to monitor the financial system. This will imply general monitoring of the entire financial system, both in areas regulated by national or international legislation, and in areas which are less regulated today.