Sweden’s traditional bank-based model for granting and financing mortgage loans is challenged by new firms with alternative financing models.
Finansinspektionen has notified the European Parliament, the EU Council, the European Commission, the ESRB and EBA on the intended measure to change the method for the application of the risk weight floor for Swedish mortgages under Article 458 of the CRR.
Finansinspektionen considers it to be necessary to implement a back-stop within Pillar 2 to limit effects on the total credit supply from systemically critical securitisation. FI is publishing today a method that it intends to use during its capital requirements assessment.
Finansinspektionen (FI) works to ensure that the financial system is stable and characterised by high confidence. It should also have well-functioning markets that meet the needs for financial services while at the same time ensuring a high level of protection for consumers. This requires stable financial firms, clear information for consumers and consideration for consumers' needs and circumstances when developing and selling products.
We publish here the important PMs and decisions that can be assumed to be of particular interest for the general public.
Nordea Bank AB has applied for authorisation to execute three merger plans.
Nordea Bank AB has applied for authorisation to execute three merger plans. The mergers refer to the absorption of three wholly-owned subsidiaries that conduct banking and securities business respectively in Denmark, Finland and Norway.
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.