. however, supported by a number of measures from the public sector, we managed to keep the plane flying as the bank engine never failed. the higher capital and liquidity in the banking system that came about from new regulations following the global financial crisis clearly contributed to this beneficial outcome. furthermore, in order for the fund sector to be better prepared for a situation with large outflows in the bond market, regulators are working on further developing liquidity management tools ( lmts ) and their use. around half of the corporate bonds in sweden are issued by commercial real estate ( cre ) firms. history has shown, not least in my own country, that problems in the cre market can affect the health of the banking system through their exposure to commercial real estate firms. the recent rise in interest rates has affected property companies through higher funding costs and lower property values. the situation has been particularly difficult for some companies, while others have been better placed to manage it. we have therefore argued that property companies need to reduce their financial risks and we are monitoring the situation closely. a third and final point i would like to make relates to the present geopolitical situation. geographically, sweden is much closer than canada to the russian aggression in ukraine. the war in ukraine has reminded us of the need to prepare for the unthinkable. it has led to sweden deciding to abandon our 200 year old neutrality policy by joining nato. closer to my own organisation, we have had a new riksbank act for over a year now. this new legislation gives the riksbank extended tasks and powers to prepare for peacetime crisis situations and heightened preparedness. as an example, the riksbank has been given the task of ensuring that companies that are of particular importance for the execution of payments plan and prepare for the continuation of their payment services during peacetime crisis situations and heightened states of alert. moreover, a recent inquiry under the ministry of finance has proposed that a crisis management function with the task of handling serious operational disruptions in the payment system, for example following from a cyberattack, should be placed at the riksbank. this new role, working with the other financial stability authorities in sweden 2 / 3 bis - central bankers'speeches as well as with the private financial sector participants, will help us be better prepared to handle operational disruptions, not only in peacetime crisis situations but also in situations with heightened alert. while we have done a lot of work to handle crisis situations related

erik thedeen : keynote address - osc dialogue 2024 keynote address by mr erik thedeen, governor of the sveriges riksbank, at the ontario securities commission dialogue 2024, toronto, 22 may 2024. * * * dear members of the ontario securities commission, thank you for the invitation to a fireside chat at your signature annual conference and the opportunity to provide a perspective from the other side of the atlantic. in my brief talk today, i would like to make three points, coming from recent experience in my own country. first, i will emphasise the importance of usable capital in the banking system, a lesson that we learned during the covid pandemic. second, i would like to allude to the corporate bond market and some lessons from my side of the atlantic. finally, i would like to say a few words related to the new risks we see facing us today, not least arising from the current geopolitical environment. but first, let me note that there are many similarities between canada and sweden. we are both nestled in the north. hockey is a common theme, and here we are of course fierce opponents. peter forsberg's winning penalty goal against canada in the olympics in lillehammer back in 1994 was even depicted on our postage stamps, marking how significant it was for us to beat the canadian team. but even if they were rivals, i believe that there has been a solid base of friendship and respect between the two teams. they cooperate in setting rules and organising tournaments, and both teams want fair play. moving closer to the focus of today's discussion, we can note that both our countries have fairly large and concentrated banking systems, dominated by a few very large banks. we have also been facing rising house prices for a long period with an associated high level of household indebtedness. moreover, both countries operate in the proximity of a large neighbour, canada with the us and sweden with the euro area. in our case, this proximity to the euro area brings about challenges related to the implementation of monetary policy. both canada and sweden rank high in terms of digital infrastructure relevant to cashless payments ; both are seen as among the most significant adopters of cashless payment methods and both are considered among the most cashless societies in the world. to sum up, canada and sweden share many common themes, boding well for today's discussion. let me now turn to my three points. the global financial crisis 15