FI Analysis

FI’s assignment is to promote financial stability and strong consumer protection. The stability assignment has been expanded to include the prevention of financial imbalances with the aim of stabilising the credit market. It requires a more extensive analysis and FI becomes clearer about the positions that authority takes. FI therefore issues a series of reports entitled FI Analysis. This series presents investigations and analyses of key issues for FI’s area of responsibility. FI Analysis reports are issued several times a year.

2019

FI Analysis 20: Fewer home equity withdrawals after amortisation requirements

This FI Analysis shows that households’ tendency to use mortgages for purchases other than buying a home decreased following the amortisation requirements.

FI Analysis 19: Young adults and the housing market

This FI Analysis shows that the the increase in house prices is the primary reason it has become more difficult for young adults to buy a home.

FI Analysis 18: Swedish risk premia and monetary policy

A disorderly and abrupt increase in international market rates could lead to significantly higher term and equity risk premia. This is the conclusion of an analysis conducted by FI.

FI-analysis 17: Fewer Vulnerable Households after Stricter Amortisation Requirement

Under FI's stricter amortisation requirement, which went into effect on 1 March 2018, new mortgagors with debt in excess of 450 per cent of gross income must amortise 1 percentage point more of their loan per year in addition to the existing requirement. The objective of the stricter requirement is to strengthen resilience of households by decreasing the number of mortgagors who have high debt in relation to their income.

FI Analysis 16: How do covered bonds function?

This FI Analysis describes how Swedish covered bonds function, how the regulation governing the cover pool is designed and how the cover pool is affected by a fall in house prices.

FI Analysis 15: Do banks still benefit from an expectation of an implicit state guarantee?

A new report from Finansinspektionen and the Swedish National Debt Office shows that the value of an implicit state guarantee for the major Swedish banks has decreased since the financial crisis in 2008–2009. This decrease is due to higher capital and liquidity requirements on the banks, a new regulation for managing banks in crisis and improved market conditions.

2018

FI Analysis 14: Reference rates are changing

2018-11-29 | BMR Reports Markets

Reference rates are important since they are used in many financial contracts, and it is therefore crucial that they are fair, transparent and accurately reflect the underlying market.

FI-analysis 13: Low for long and large annuity payments

Theprevailing low interest rate environment is challenging for pension managers who pledge a guaranteed rate of return to their beneficiaries.

FI-analysis 12: The mortgage cap reduced household debt

This FI Analysis presents an assessment of the Swedish mortgage cap. The analysis indicates that the mortgage cap has changed household behaviour. Households with new mortgages borrow less than what they would have done if FI had not implemented the mortgage cap. They are also buying less expensive homes.

2017

FI Analysis 11: Consequences of a stricter amortisation requirement

Households with high loan-to-income ratios, i.e. large loans in relation to income, are vulnerable. They are sensitive to rising interest rates since their monthly expenses are affected more than households with lower loan-to-income ratios. They are also somewhat more sensitive to a loss of income, for example if they become unemployed.

FI Analysis 10: Amortisation requirement reduced household debt

This FI Analysis shows that the amortisation requirement has helped households with new mortgages change their behavior. New mortgagors are taking smaller mortgages than what they would have done if FI had not implemented the amortisation requirement. These households are also buying less expensive homes.

FI Analysis 9: Households’ interest rate adjustment periods – an economic vulnerability?

SUMMARY: In Sweden, both the percentage of mortgages that have a variable interest rate and household debts have risen sharply. This combination has made house-holds sensitive to rising interest rates.

FI Analysis 8: Vulnerability indicators for liquidity

The vulnerability indicators FI identifies in this analysis show a slightly elevated level of vulnerability for liquidity. Several indicators contribute to this.

2016

FI Analysis 7: Leverage ratio as a minimum requirement reduces banks’ buffers

A leverage ratio requirement could contribute positively to financial stability during normal conditions in that it increases the robustness of banks' capital adequacy.

FI Analysis 6: Vulnerability indicators within the insurance sector

FI has identified a number of quantitative indicators that point toward factors in the insurance sector that could have an effect on financial stability. These indicators show that there was good resilience in the insurance sector at the end of the year.

FI analysis 5: Macroeconomic effects of dept-to-income limits

House prices have been rising and, as a result, so has the debt of households in relation to their income – i.e. their debt-to-income (DTI) ratios. A DTI limit could slow this trend, but limiting households' opportunities to borrow would also slow consumption and economic activity.

2015

FI-analysis 4: A model for household debt

This FI-analysis introduces a model for household debt in Sweden.

FI Analysis 3: Liquidity in the market for covered bonds

2015-12-01 | Reports Markets Bank

The market for covered bonds is important for bank funding and therefore financial stability. The requirements for banks to hold more capital and liquidity for their operations have been tightened since the financial crisis. These requirements affect the banks' costs of holding securities in the trading book and so their costs of acting as market makers.

FI analysis 2: Finansinspektionen's vulnerability indicators

FI regularly monitors the vulnerabilities in the financial system. FI is now taking this a step further by creating a categorization for grouping and studying indicators of vulnerability. A systematic review of indicators helps to identify and follow vulnerabilities, which makes it easier to understand the risks of financial or macroeconomic instability.

FI analysis 1: The Too-Big-To-Fail Guarantee for Swedish Systematically Important Banks

FI has decided to launch a new report series, FI-analysis. This is our first report in this series where FI presents studies and analysis of questions that is of particular importance to FI.

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