“ Sweden differs from some other European countries. We don’t have any failed banks reconstruction needs are not as great,” Swedish finance minister Anders Borg said, according to a report by Reuters. “We don't have any banks having trouble meeting capital adequacy demands. All Swedish banks meet them by a good margin, so there is also no need to inject capital,” Mr Borg said.

The Finns are reportedly not even considering capital injections as, according to according to Prime Minister Vanhanen, the country’s banks have no need for them.

This should help maintain confidence in their respective systems, shielding them from any fallout from Iceland’s troubles.

Other northern neighbours are more concerned, however.

The Danes passed a bill last week that will guarantee all deposits, including interbank loans. Under the plan, commercial lenders agreed to put as much as $6.37 billion into a fund insuring deposits, with the central bank guaranteeing any additional losses.

Norway looks in most significant danger of being sucked into the global crisis. "Even if the Norwegian banks are fundamentally strong, their funding situation has deteriorated significantly," the finance ministry said.

Norway's money market is based on North American dollar swaps and has dried up along with global dollar funding. At the weekend, Norway's government and central bank introduced new measures to increase banks' liquidity and ability to fund themselves. The measures included plans for $57.41 billion in new government bonds.

Banks can exchange covered bonds, including mortgage-backed securities, for new government bonds, which can then be used as collateral for central bank liquidity.

Because Norway runs huge budget surpluses, the amount of government bonds is limited.