Latvian Bank Runs on Swedish Banks

STOCKHOLM -(Dow Jones)- Swedish lender Swedbank AB (SWED-A.SK) doesn't expect the weekend's extensive cash withdrawals in Latvia to result in any liquidity problems, an executive told Dow Jones Newswires on Monday.

Latvians during the weekend withdrew unusual amounts of cash from Swedish banks' cash machines in the country, following rumors that Swedish banks could be in trouble, Swedbank Communications Director Thomas Backteman said.

The rumors began about two weeks ago when Latvian authorities took over Latvian bank Krajbanka and intensified Friday, Backteman said, but he added that the rumors were completely groundless.

Swedbank estimates that the weekend's cash machine withdrawals were seven times higher than during a normal weekend, at around 15 million lat ($29 million), Backteman said. Around a third of Swedbank's Latvian cash machines were empty by 2000 GMT Sunday evening, he said.