Financial Stability Report 2019:2

The slowdown in the global economy has contributed to expectations of continued very low interest rates in the years ahead. In such an environment, market participants may choose to increase their risk-taking, which can cause assets to be overvalued and indebtedness to rise to unsustainable levels. In Sweden, high household indebtedness and vulnerabilities in the banking system are making the Swedish financial system sensitive to shocks. It is therefore important to increase the resilience of the financial system.