Financial stability

Banks and households need to strengthen their resilience

Picture of the Financial Stability ReportThe Swedish banking system is vulnerable due to its size, concentration and interconnectedness. The banks are also exposed to liquidity risks. There are short-term liquidity risks in the banking system that, in the long run, can pose risks to financial stability. The Swedish FSA should therefore set Liquidity Coverage Ratio (LCR) requirements for all significant currencies. The major Swedish banks should also continue to reduce their structural liquidity risks. The vulnerabilities present in the banking system also make it important to ensure that the banks have enough capital.

 

It is also necessary to manage the risks of the continued high and rising housing prices and increasing household indebtedness, as well as increase the resilience of households as quickly as possible. Measures are particularly important in a situation in which low interest rates are contributing to ever-rising housing prices and household indebtedness. In particular, measures to manage the causes of the increasing indebtedness are needed.

 

Press Release: Banks and households need to strengthen their resilience

The Riksbank's most recent recommendation and risk outlook

One of the Riksbank's core functions is to promote a safe and efficient payment system. The payment system is important for all economic activities and is a central component of the financial system. For that reason the Riksbank regularly analyses the risks and threats to the stability of the Swedish financial system. The purpose of this analysis is to detect changes and vulnerabilities that could lead to a serious crisis. The major Swedish banks have particular significance in the analysis. The Riksbank's assessment of stability is published twice yearly in the Financial Stability Report.