Finansinspektionen (FI) reports its assessment of financial stability twice a year. At a press conference today, FI Director General Erik Thedéen and FI Chief Economist Henrik Braconier will present this year’s second stability report.
"We are facing clear challenges related to the housing market and household indebtedness. We must be observant with regard to the unique combination of very low interest rates and relatively strong financial growth," says Erik Thedéen.
The Swedish economy is strong, but the consequences for financial stability from the combination of rising resource utilisation and very low interest rates are difficult to assess. There is a risk that imbalances are building up, and even though they are difficult to identify and measure, they are very important to monitor.
As a whole FI makes the assessment that the resilience of the Swedish financial firms to various disruptions that may arise both domestically and internationally is satisfactory. Swedish banks in general have large capital buffers that can absorb shocks. This is good for financial stability in Sweden. It is important that both international and domestic regulation of banks' capital be focused on maintaining these buffers.
The amortisation requirement has had a dampening effect on the housing market in 2016, but the risks associated with housing market growth and high household indebtedness remain at elevated levels. Additional measures may therefore be necessary in the future.
FI's stability report will be presented at a press conference today, 1 December, at 10 a.m. by Director General Erik Thedéen and Chief Economist Henrik Braconier.
The press conference is only for representatives from the media, but will be broadcast live on FI's website.