2009-11-10
Risks in the Financial System
PRESS RELEASE
Finansinspektionen warns that there are several potential risks that must be carefully monitored. One of the risk areas highlighted in the new report, Risks in the Financial System, and the object of a review by FI is the mortgage market.
FI believes that mortgage credit losses do not constitute a threat to the stability of the banks. However, heavily borrowed households may suffer when interest rates rise if the banks do not carry out comprehensive credit checks.
Micro loans, often called SMS loans, are another threat for consumers. Companies that offer micro loans do not fall under FI's control and thereby are not subject to supervision. FI believes that legislation in this area must be reviewed.
The results of the new stress tests conducted by FI during the fall show that the Swedish banks can withstand sustained major credit losses in the Baltics and that their capital buffers are stronger now than they were in the spring.
In order to gain an overview of the current global financial risks, FI created a panel of internationally renowned experts. The panel emphasised that the commercial real estate sector is a source of risk and indicated that this sector can cause large credit losses in the future, both in Europe and the USA.
It is the opinion of the panel that there are still significant risks in Eastern Europe.
Press conference at 10 am. The report is presented by Martin Andersson, Director General, Lars Frisell, Chief Economist and Masih Yazdi, analyst.
