Swedish Banks’ Exposure to Economic Policy Uncertainty: a GARCH Approach
This study investigates how EPU affects stock returns and volatility for Sweden’s four largest banks: Swedbank, Skandinaviska Enskilda Banken, Svenska Handelsbanken, and Nordea. As a small open economy with a concentrated and globally exposed banking sector, Sweden is particularly vulnerable to both domestic and international uncertainty shocks. Using monthly data from 2000 to 2024, we apply a GAR
