In this report, Finansinspektionen, Sveriges Riksbank and the Swedish National Debt Office present a general description of the driving forces behind the rise in household indebtedness. A central conclusion in the report is that indebtedness is largely linked to developments on the housing market.
Household debt does not represent a risk to financial stability, but it does increase the macroeconomic risks. If designed to be flexible, an amortisation requirement could reduce these risks.
New mortgage holders are more likely to amortise after the banks introduced individually tailored amortisation plans as of 1 July 2014. The ongoing debate in the media about amortisation and that the Swedish Bankers’ Association has tightened its recommendations regarding amortisation may also have contributed to the increase in amortisation payments.
FI makes the assessment that the risks associated with household debt have not yet reached alarming levels. However, there are also macroeconomic risks associated with rising household indebtedness.
FI makes the assessment that an amortisation requirement that is applied in a flexible manner will strengthen in the long run household resilience to shocks. An amortisation requirement will keep house prices down and slow the rate at which debt is growing, and higher amortisation payments will help households reduce their debts and thus their interest expenses.
Finansinspektionen presents positions to ensure that the Swedish banking system stands more robustly equipped to withstand future financial crises.
Finansinspektionen has decided to approve the reorganisation of Sparbanken 1826.
Finansinspektionen grants Nasdaq OMX Clearing authorisation to act as a central counterparty in accordance with the EU’s regulation regarding OTC derivatives, central counterparties and transaction registers (EMIR).
FI is implementing a risk weight floor of 15 per cent for Swedish mortgages. The floor will be implemented as a supervisory measure within Pillar 2.
Finansinspektionen finds that guidelines from the European supervisory authorities addressed to competent authorities or financial market participants are equivalent to Swedish general guidelines.