Financial stability

Further measures are needed to manage household indebtedness

Picture of the Financial Stability Report

The major Swedish banks are reporting high levels of profitability and the debt-servicing ability of their customers is good. This is contributing to the Riksbank's assessment that the financial system is currently working well. However, the Swedish banking system, and the financial system as a whole, is sensitive to various shocks. The valuations on several asset markets are high from a historical perspective. This is particularly true of the Swedish housing market. This, together with increasing indebtedness in the household sector, has made both households and financial institutions more vulnerable.


To reduce the risks linked to the rising housing prices and households' rising indebtedness, the Riksbank deems a combination of various measures to be necessary to both subdue new lending and have an impact on the loan stock.


It is of the greatest importance that the mandate for macroprudential policy of Finansinspektionen (the Swedish financial supervisory authority) is clarified as soon as possible so that efficient macroprudential policy can be conducted in Sweden. It is also important to reduce the vulnerability of the banking system..


Press Release: Household debt demands further measures

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.