The 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