##ksbank decides on its own budget mean that it differs from other administrative authorities that are essentially financed by appropriations or fees. this financial independence is also reflected in the provisions of the riksbank act on how the riksbank is to be financed. 11 according to the act, financial independence can be achieved by the riksbank independently financing its own operating costs in the long term through the return generated by the management of the assets. according to the legislator, the riksbank ’ s equity should be sufficiently large to ensure this. 12 self - financing occurs when the net interest income, i. e. the difference between the riksbank ’ s interest income from assets and interest expenses for liabilities, covers the operating costs. 13 equity, as well as outstanding this distinction between the state ’ s assets and those of the riksbank is necessary in order to follow regulations in eu law on, for example, the ban on monetary financing. government bill 2021 / 22 : 41, p. 63. government bill 2021 / 22 : 41, p. 149. the difference will also cover any financial provisions or reversals made by the riksbank. in addition, the riksbank needs to make a certain profit to ensure that its equity increases in line with inflation and to enable the riksbank to build up a capital buffer that can cover risks of various kinds. 11 banknotes and coins ( so - called cash supply ), provides interest - free funding of assets that generate returns for the riksbank. 14 this cost - free capital thus makes a positive contribution to net interest income. in case of losses or deficits, the equity is reduced and therefore the possibility of self - financing. the cost - free capital therefore also needs to include a buffer to absorb unforeseen losses. 15 the legislator weighed the risks of too much equity against the risks of too little and concluded that a real value - hedged target level of sek 60 billion is appropriate. the riksbank act therefore stipulates that the riksbank ’ s equity may amount to a maximum of sek 60 billion, unless the riksdag decides otherwise, and that this target level shall be adjusted upwards with cpi inflation each year so that the capital retains its real value. 16 an amount corresponding to two - thirds of the target level, i. e. sek 40 billion, shall be the basic level of the riksbank ’ s equity. if equity becomes too small, i

types of liquidity support in crisis situations, both to individual credit institutions and to the financial system as a whole. however, the need for liquidity support does not arise in a vacuum but is often due to the risk of financial losses for the institutions concerned. this requires cooperation and exchange of information, perhaps primarily between the riksbank and finansinspektionen, but also with the swedish national debt office and the government. this interaction, for example in the assessment of financial stability risks, is important even under normal circumstances, as a large part of the work on financial stability is about identifying and preventing risks. if a measure entails an intervention in a private interest, section 5, third paragraph of the administrative procedure act ( 2017 : 900 ) is applied. 5 peacetime crisis situations and heightened preparedness increase the need for cooperation cooperation with other authorities is also needed in other areas. chapter 5 of the riksbank act gives the riksbank extended tasks and powers to prepare for peacetime crisis situations and heightened preparedness. these are extremely important tasks, not least in the new geopolitical environment. the riksbank is not only responsible for maintaining its own operations during peacetime crisis situations and times of heightened preparedness, but also for ensuring that the general public can make payments under such conditions. according to chapter 5. section 4 of the riksbank act, the riksbank shall also oversee that companies that are of particular importance for the execution of payments plan and prepare to be able to continue their payment operations during peacetime crisis situations and times of heightened preparedness. the riksbank plays a central role in the swedish payments system. the riksbank's tasks include providing systems for the settlement of payments by financial companies and authorities and overseeing payment and clearing systems. given this responsibility, it is natural that the riksbank also has a contingency responsibility, although some problems have arisen with the division of responsibility because the government, which is responsible for civil defence, has at the same time wanted to organise authorities under the government for the same purpose. in 2022, the government decided to introduce an emergency preparedness regulation, 4 which entails a new structure for civil defence in sweden where 60 authorities under the government were designated as so - called preparedness authorities. these authorities are organised by function into preparedness sectors, each of which is led by an authority with responsibility for the sector. finansinspektionen has been designated as