A stable, well-functioning financial market for allA stable, well-functioning financial market for allStability in the financial system
Sweden has a large and interlinked financial system that is dominated by four major banks. Several measures have been taken in recent years to strengthen its stability, and Finansinspektionen (FI) finds that resilience in the financial system is currently satisfactory.
At the same time, the banks' dependence on market funding makes them vulnerable to a weakening of market confidence. FI has therefore continued its work to create buffers in the Swedish banking system. Capital requirements shall be particularly high for the major banks, because problems in these systemically important firms could have very serious implications for the economy.
FI also sees risks associated with household debt continuing to rise from an already elevated level. At the same time, the financial position of households is essentially strong, and any further measures should be taken gradually so as to avoid causing an adaptation process that is too fast and hence costly.
