A large portion of Swedish households’ loans is for their homes. But the households also use loans to finance some of their consumption. Consumption credit has grown rapidly in recent years. In terms of SEK, unsecured loans represent the largest share of consumer credit. In terms of volume, invoices are the most common form of consumer credit. These are some of the conclusions from Finansinspektionen’s (FI) survey of new consumer credit with data from 2021.
FI’s strategy for preventing greenwashing in the financial sector aims to safeguard the trust in sustainable investments and a sustainable finance market.
In 2019, FI’s overarching mandate was expanded to include a responsibility to ensure that the financial system contributes to sustainable development. FI is also the responsible supervisory authority for a number of new regulations related to sustainable finance that are the result of the EU’s ambitious sustainability agenda.
Changing or pausing the amortisation requirements is not an accurate or appropriate measure for helping the households with the greatest need for financial support to handle their higher costs. This is the conclusion of FI’s evaluation of how the amortisation requirements impact households with lower incomes and small margins in today’s difficult economy.
The Swedish Financial Supervisory Authority, Finansinspektionen (FI) has conducted an in-depth analysis of how managers of funds registered in Sweden that have sustainable investment as its objective (so-called Article 9 funds) meet the requirements on sustainability-related disclosures in the pre-contractual information they must provide to investors.
Finansinspektionen has analysed whether loyal policyholders pay higher premiums for the three non-life insurance products that are most important for consumers: home insurance (contents), home insurance (building) and private car insurance. The analysis shows that premiums for home insurance (contents) are raised significantly more for loyal customers than for new customers. The premiums for home insurance (building) also are raised more for loyal customers, but this does not apply to private car insurance.
One of Finansinspektionen’s (FI) assignments is to promote a high level of protection for consumers on the financial markets. FI does this in part by conducting an annual survey of new consumer credit. The survey helps enhance our understanding of consumer credit and the risks it entails for borrowers. Loans and loan service payments have a major impact on household finances. For a borrower with an average income that takes out a large consumer credit, the monthly payment for the interest and amortisation payments can correspond to the payment of a significantly larger mortgage.
Since 2010, FI has implemented a number of macroprudential measures aimed at increasing the resilience in the financial system and subduing the risks associated with high and rising household debt. These measures include tightening the capital requirements on banks and introducing a mortgage cap and two amortisation requirements. In this report, we present an overall assessment of these measures, with a focus on the measures that, via lenders, place restrictions on households’ mortgage borrowing.
Finansinspektionen concludes in a new report that fund managers need access to additional tools to manage liquidity risks in Swedish UCITS and special funds. We consider there to be a certain type of swing pricing that could be used already today. The report outlines a suggestion for how to regulate this and other liquidity management tools in legislation and regulations. FI takes the position that Swedish UCITS only need to be open for redemptions once a week. We suggest that the funds instead only need to be open for redemptions twice a month.
Finansinspektionen has an assignment to promote the financial system’s contribution to sustainable development. The sustainability report outlines the current sustainability issues that are related to the financial sector and lists examples of what FI is working on in this area.