Resilience in the Swedish financial system is satisfactory. However, the sharp rise in housing prices means that household debt is growing rapidly. This development entails an increase in the risks to economic stability. It is therefore necessary to be prepared to take further measures.
These are some of the conclusions in FI's Stability Report published today.
FI assesses that the Swedish financial system as a whole is functioning efficiently and currently has satisfactory resilience, but that there are also vulnerabilities. Swedish banks are well-capitalised, but FI sees a need to tighten up the banks' use of internal models. At the same time, FI sees advantages with risk-sensitive capital requirements.
FI also observes that household indebtedness does not at present offer any direct threat to financial stability. However, debt is growing rapidly and many households are highly indebted, which makes the economy vulnerable to shocks. It is therefore good that the amortisation requirement can be in place in summer 2016.
In addition, it is necessary to be prepared to take further measures if the risks linked to the growth in debt are not dampened. FI has mentioned a debt-to-income ratio ceiling as a potential further measure and also points to the need for FI's powers of authority to be clarified.
The Stability Report is presented at a press conference today, Tuesday 1 December, at 10 a.m. by FI's Director General Erik Thedéen and Chief Economist Henrik Braconier.
The press conference is only for representatives of the media, but will be broadcast live on FI's website.