Financial stability

Banks and households increasingly vulnerable

Picture of the Financial Stability Report

Housing prices and household indebtedness are continuing to rise, making households and banks more vulnerable. Measures are therefore needed to reduce the risks linked to households’ increased indebtedness and to strengthen the resilience of Swedish banks.


Measures are needed to address the underlying causes of the indebtedness, for instance, targeting the housing market to attain a better balance between supply and demand. Taxation reforms are also needed to reduce households’ willingness and ability to take on debt. It is also important to have macroprudential policy measures, for instance, a debt-to-income limit.


In light of the vulnerabilities present in the banking system, it is important to ensure that the major banks have sufficient capital by introducing a leverage ratio requirement. It is also important for the banks to hold sufficient liquidity in order to manage all their liquidity risks.



Press Release: Banks and households increasingly vulnerable

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.