Swedish exposure to bankrupt HQ Bank 02 September 2010Stockholm Reporter: Steven Lafferty
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A number of Swedish banks have announced their exposure to local HQ Bank, which has started a process of involuntary liquidation after the Swedish financial watchdog last Friday revoked all its licences.
Svenska Handelsbanken AB (STO: SHB A), or SHB, has no credit exposure to HQ Bank. "Other exposures are marginal and do not entail any risk of loss for the bank," SHB said.
Nordea Bank AB (STO: NDA) does not have any credit exposures to HQ Bank either and other exposures are limited and fully secured.
Swedbank AB (STO: SWED A) said its exposure to the insolvent bank totals SEK88m and is fully secured mainly with cash but also with shares from the OMX Stockholm 30 index, which comprises the 30 most traded stocks on the OMX Nordic Exchange in Stockholm.
Skandinaviska Enskilda Banken AB (STO: SEB A), or SEB, has a credit exposure towards HQ Bank of SEK141m, securities lending amounting to a nominal value of SEK600m and settlement guarantees of SEK307m. However, the value of the collateral, in the form of cash, bonds and shares, exceeds the exposure.
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