Financial stability

Housing prices and household indebtedness – the foremost risk

Picture of the Financial Stability ReportHouseholds' high and rising indebtedness form a serious threat to financial and macroeconomic stability. Further measures need to be introduced to increase the resilience of the household sector and reduce risks. There are also vulnerabilities in the Swedish banking system and its resilience therefore needs to be reinforced. This applies to both the banks' ability to manage liquidity risks and their capital ratios. At the same time, it is necessary that the Riksbank has a sufficiently large foreign currency reserve if liquidity requirements should arise in foreign currency that the banks themselves are unable to manage.


Household indebtedness and housing prices are still rising, and indebtedness is also expected to rise in the period ahead. This entails major risks for the Swedish economy. It is therefore important to continue with measures to increase resilience in the household sector and reduce the risks. Both measures to achieve a better balance between supply and demand on the housing market and tax reforms to reduce the willingness or ability of households to take on debt are required. Further macroprudential policy measures also need to be taken.


Press Release: Housing prices and household indebtedness – the foremost risk

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.