Proposal from the Ministry of Finance for more macroprudential policy tools
The Riksbank welcomes the Ministry of Finance’s proposal regarding further tools for macroprudential policy. It is important that the Government and the Riksdag quickly clarify the mandate for Finansinspektionen to take measures so that financial imbalances can be redressed.
The current regulation of macroprudential policy does not comprise sufficient grounds for counteracting financial imbalances. This has made it more difficult to implement necessary measures to mitigate the risks linked to household indebtedness. The Riksbank is therefore positive to legislation that provides scope for introducing necessary tools in this field.
The Riksbank takes the following view on the Ministry of Finance's proposal:
It is proposed in the memorandum that Finansinspektionen's regulations regarding the application of tools shall be subject to the Government's consent. The Riksbank considers that there are better ways of meeting the Government's need for control as the proposal reduces the scope for flexibility and can make it more difficult for Finansinspektionen to take rapid action. This can be achieved instead by the Government deciding on which macroprudential policy tools to delegate to Finansinspektionen and within what framework Finansinspektionen may apply them. Finansinspektionen will then decide on measures within this framework.