Stricter amortisation requirement is good
The Riksbank welcomes Finansinspektionen's proposal for stricter amortisation requirements. Measures to increase households’ resilience are necessary and should be introduced as quickly as possible. It is also important that the amortisation requirement and households’ resilience are evaluated to assess whether the desired effects have been achieved.
Swedish households' high and rising indebtedness comprises a serious threat to financial and macroeconomic stability. It is therefore good to have stricter amortisation requirements aimed at households with high debts in relation to their incomes. The Riksbank has pointed out earlier that the current amortisation requirement is relatively mild, in an international perspective.
The Riksbank considers it important to regularly evaluate whether households' resilience has increased and whether the stricter amortisation requirements have slowed down the growth in debt. If the desired effect is not attained, the Riksbank considers that Finansinspektionen should consider adjusting the amortisation requirements. If households' resilience does not increase and the risks linked to household indebtedness do not decline, further macroprudential policy measures may be necessary.