Result

2017

Proposal for a stricter amortisation requirement for households with high loan-to-income ratios

FI is proposing changes to Finansinspektionen’s regulations (FFFS 2016:16) regarding amortisation of loans collateralised by residential property. The regulations cover mortgages granted by credit institutions, i.e. banks and credit market companies.

FI proposes stricter amortisation requirement

Finansinspektionen (FI) is presenting today its proposal for a stricter amortisation requirement. Following a decision by FI’s Board of Directors, the proposal is now being submitted to the Government for approval.

Stability in the Financial System

The Swedish economy is thriving, but a strong economy combined with low interestrates has resulted in high asset prices and rapidly rising household debt.

FI Analysis 11: Consequences of a stricter amortisation requirement

Households with high loan-to-income ratios, i.e. large loans in relation to income, are vulnerable. They are sensitive to rising interest rates since their monthly expenses are affected more than households with lower loan-to-income ratios. They are also somewhat more sensitive to a loss of income, for example if they become unemployed.

Stricter amortisation requirement for households with large debt

Finansinspektionen’s report, Stability in the Financial System, shows that the high level of household debt and rising house prices are causing vulnerabilities to build up in the Swedish economy. FI therefore would like to introduce a stricter amortisation requirement for new mortgage holders who take large loans in relation to their income.

A framework for consumer protection (summary)

Finansinspektionen (FI) works to ensure that the financial system is stable and characterised by high confidence. It should also have well-functioning markets that meet the needs for financial services while at the same time ensuring a high level of protection for consumers. This requires stable financial firms, clear information for consumers and consideration for consumers' needs and circumstances when developing and selling products.

One step closer to a better financial market for consumers

2017-05-11 | Consumer

Over-indebtedness is at the top of the agenda at FI’s Consumer Protection Day, which is being held today, Thursday, 11 May. FI will also present its annual report, Consumer Protection on the Financial Market, which includes a review of the areas that FI is prioritising in terms of consumer protection supervision.

Consumer Protection on the Financial Market (2017)

2017-05-11 | Reports Consumer

Finansinspektionen (FI) presents in this report the risks consumers are facing on the financial market and that FI is prioritising in its supervision. One example is the risk that consumers will be granted larger loans than what their personal finances allow.

Preschool children can learn about personal finances

A feasibility study conducted by Finansinspektionen in collaboration with Mälardalen University has determined that it is possible to teach preschool children about money and finances. Small children are happy to talk about money, but preschool teachers are not experienced in talking to them about personal finances.

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