Sveriges Riksbank

Biographical Overview & Key Facts

Subject:

Sveriges Riksbank

Role / Field:

The central bank of Sweden, established in 1668, it is the world's oldest surviving central bank.

Database Source:

2Day Chrono-Wiki & Wikipedia CC BY-SA 4.0

Origins & Early Life

Sveriges Riksbank, or simply the Riksbank, is the central bank of Sweden. Established in 1668 by the Riksdag, it is the world's oldest surviving central bank, and the third oldest bank in continuous operation. Prior to World War I, it was also the only state-owned central bank outside of the Russian Empire. It is also a member of the European Systemic Risk Board (ESRB). The first part of the word riksbank, riks, stems from the Swedish word rike, which means realm, kingdom, empire or nation in English.

Career & Major Achievements

A literal English translation of the bank's name could thus be Sweden's Realm's Bank. The bank, however, does not translate its name to English but rather uses its Swedish name the Riksbank in its official English-language communications. The Riksbank began operations in 1668. Previously, Sweden was served by the Stockholms Banco (also known as the Bank of Palmstruch), founded by Johan Palmstruch in 1656. Although the bank was private, it was the king who chose its management: in a letter to Palmstruch, he gave permission to its operations according to stated regulations.

Enduring Legacy & Impact

But Stockholms Banco collapsed as a result of the issuing of too many notes without the necessary collateral. Palmstruch, who was considered responsible for the bank's losses, was condemned to death, but later received clemency. On 17 September 1668, the privilege of Palmstruch to operate a bank was transferred to the Riksens Ständers Bank (lit. 'Bank of the Estates of the Realm') and was run under the auspices of the parliament of the day. Due to the failure of Stockholm Banco, the new bank was managed under the direct control of the Riksdag of the Estates to prevent the interference from the king.

Chronological Milestones & Life Events

1. 1656: 1656 Milestone — Previously, Sweden was served by the Stockholms Banco (also known as the Bank of Palmstruch), founded by Johan Palmstruch in 1656.
2. 1668: 1668 Milestone — Established in 1668 by the Riksdag, it is the world's oldest surviving central bank, and the third oldest bank in continuous operation.

Notable Quotes by Sveriges Riksbank

“Hinc robur et securitas”

Historical Fact-Check Quiz: Sveriges Riksbank

True or False: “The Riksbank was immediately granted the right to issue banknotes upon its establishment in 1668.”

Answer (FALSE ❌): Initially, the bank struggled with issuing notes due to the collapse of the predecessor, Stockholms Banco, and later faced restrictions on note issuance.

Contemporary Figures & Related Historical Timelines

• François Couperin — Historical peer (Born in 1668) (1668): Master of the French Baroque style, renowned for his exquisite keyboard works.
• Giambattista Vico — Historical peer (Born in 1668) (1668): Pioneering philosopher of history, known for 'Verum factum' and social science.
• Edmond Halley — Historical peer (Born in 1656) (1656): Pioneering astronomer, mathematician, and physicist known for comet prediction.
• Gerard van Honthorst — Historical peer (Died in 1656) (1656): Dutch Golden Age painter famed for artificially lit scenes and Caravaggio influence.

Frequently Asked Questions about Sveriges Riksbank