Finansinspektionen (FI) strengthened its anti-money laundering supervision in 2019, in part by dedicating considerable resources to reviewing major Swedish banks’ governance and control of anti-money laundering measures in Baltic subsidiaries.
The majority of consumption loans (non-mortgage loans) are small and have a high interest rate and a short maturity. However, it is households with large loans that represent the largest share of new lending, and these loans are growing at the fastest rate. The households with the highest income take out the largest loans. If the interest rate increases, many borrowers will need to use a large part of their income to make their interest and amortisation payments. This is evident in Finansinspektionen’s (FI’s) analysis of consumption loans, Swedish Consumption Loans.
The commercial real estate market plays a key role in financial stability. The financial position of commercial firms is currently satisfactory, but many firms are vulnerable to higher interest rates and weaker economic growth.
Insurance undertakings have taken steps to develop IT systems, customer communication and quality assurance since FI published its previous report on personal injury claims handling in 2017.
Sustainability-related risks and opportunities do not differ from the other risks and opportunities that can be linked to financial firms’ operations. Therefore, sustainability should not be managed in limited areas of corporate governance, but rather be an integral part of corporate governance as a whole. In this survey, FI studied how financial firms describe their management of sustainability aspects in corporate governance and how these aspects are integrated into the operations.
Household debt is not primarily a direct threat to financial stability. However, if the economy takes a turn to the worse, many households may be forced, or even choose, to reduce their consumption in order to continue to be able to pay off their loans. This could exacerbate a crisis and threaten financial stability, determines FI in a report on FI’s use of macroprudential tools.
Brexit will become a reality when the UK leaves the EU on 29 March 2019. This will change conditions for cross-border trade in financial services to and from the UK. FI describes in this report its analysis of a number of significant economic and legal aspects related to Brexit.
Most loans for consumption are small and have a high effective interest rate and a short maturity. Households with large loans represent the largest share of new lending, though, and the large loan segment is growing the fastest. Households with high income have the largest loans. Borrowers with mortgages normally have larger consumption loans than borrowers without mortgages. These are some of the results from FI’s mapping of consumption loans, Swedish Consumption Loans 2018.
The outcome of personal injury claims can have a considerable effect on the injured party. Some injured parties do not have confidence for the claims handling process at insurance undertakings. Given the total number of personal injury claims, there are relatively few complaints regarding claims handling.
FI is establishing a fintech innovation centre that will provide information to and maintain a dialogue with companies conducting innovation-based business. This centre and additional initiatives are presented in FI's report to the Government regarding an assignment.
Finansinspektionen (FI) received a mandate from the Government to propose a capital requirement regulation for undertakings providing occupational retirement. The objective is to provide comprehensive protection for consumers (beneficiaries) while at the same time enabling effective management of occupational pensions.
Finansinspektionen (FI) has identified extensive quality deficiencies in the reporting of insurance firms. These deficiencies are a sign that the internal governance and control of many of the firms’ reporting procedures are unsatisfactory. Through this document, FI provides guidance for insurance firms for how they can strengthen their reporting procedures.
The design of the Swedish regulations for capital adequacy and crisis management is appropriate for reducing the risk of financial crises and ensuring effective management if a crisis were still to occur. This is the conclusion reached by Finansinspektionen (FI) and the Swedish National Debt Office in a joint report. The report emphasises that Sweden should safeguard national discretions in the framework of banking requirements in ongoing EU negotiations.
Finansinspektionen is publishing today two reports on sustainability. Together, they serve as the report to the Government that FI was tasked with earlier in the year on the continued work with sustainability issues, how these issues are linked to financial regulation and supervision and how supervision can contribute to sustainable development in a constructive manner.
FI believes that independent financial advice would play an important role on the savings market, since consumers are at an information disadvantage in relation to producers of saving products while at the same time having to take more responsibility for their financial future.
The national risk assessment regarding the financing of terrorism that was published in June 2014 identified a need to increase knowledge and awareness about the financing of terrorism.
Sweden and Swedish financial institutions have small exposures to climate risks. This means that the current risk that climate changes will cause problems for financial stability is low. However, there is a need for more information as well as improved transparency surrounding climate-related risks within the sector. Financial institutions also need to develop stress tests and analyses in order to identify what kind of consequences could arise from these risks and how such consequences could be prevented.
Finansinspektionen (FI) has been commissioned by the Government to report on the bank's internal rules regarding credit granting to companies from the perspective of the environment and sustainability. If necessary, FI shall present proposals for measures that can be included in the banks' credit granting process to promote such a perspective.
Alternative forms of funding can have a positive effect on the competition in and efficiency of the financial market by enabling more projects to find funding even if, for example, banks are not willing to grant a loan. However, crowdfunding introduces certain risks for consumers.