Financial stability

Financial stability good at present – but risks need to be managed

Picture of the Financial Stability ReportThe Riksbank's assessment is that the Swedish financial system is stable at present. However, the size and concentration of the Swedish banking sector, as well as the banks' extensive market funding, create vulnerabilities that may have a negative impact on financial stability. The high and rising level of indebtedness among Swedish households also poses risks to the stability of the financial system and to the real economy. The Riksbank therefore shares Finansinspektionen's assessment that increasing the risk-weight floor for Swedish mortgages from the current level of 15 per cent to 25 per cent is justified. The Riksbank also continues to recommend that the major banks ensure that they have adequate capital and liquidity, and that they improve their public capital and liquidity reporting. 

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.