The risk that Swedbank cannot fulfil its payment commitments at maturity or when they fall due. Liquidity risks arise because the maturity structures on the asset and liability sides of the balance sheet do not coincide, since lending is generally longer term than deposits.
Access to long-term financing is imperative in order to adequately manage liquidity risk. Swedbank has therefore diversified its funding through a number of short- and long-term programmes in several different capital markets.
To ensure resilience in the event of disruptions in the capital markets, Swedbank maintains a liquidity reserve consisting of securities with a high level of creditworthiness which can be pledged to central banks or divested at short notice.
Liquidity risk is limited in terms of survival horizon.