A stable, well-functioning financial market for allA stable, well-functioning financial market for allStability Report
The report assesses financial stability and describes the status of the financial markets. It also provides an account of lending and lending terms and conditions to corporates and households. Published twice a year.
2023
Stability in the Financial System (2023:2): Adjustments to higher interest rates remain to be made
The higher interest rate means that households and companies need to make adjustments to their finances. Finansinspektionen (FI) is now seeing a decline in risk-taking. However, the change in the state of the economy and uncertainty regarding how long the higher interest rates will remain pose a risk to financial stability. Commercial real estate undertakings with high debt are particularly at risk should the interest rates remain high. These are the conclusions of the second Stability Report of the year.
Stability in the Financial System (2023:1)
Since the publication of the stability report last autumn, inflation has slowed somewhat in the large economies but is still significantly higher than the central banks’ inflation targets. Monetary policy has therefore been tightened further, and interest rates continued to rise. High inflation and rising interest rates mean that the forecasts for global economic development continue to be weak.
2022
Stability in the Financial System (2022:2)
High inflation has led to rapidly rising interest rates. Given the current rapid change in conditions, both participants on the financial markets and borrowers need to transition quickly. In the short term, this means elevated risks and greater uncertainty. The already high risks in the commercial real estate sector have continued to increase.
Stability in the Financial System (2022:1)
Interest rates and interest rate expectations have increased in 2022 due to high and rising inflation. One sector that is vulnerable to rising interest rates is the commercial real estate sector. FI has also noted that liquidity on the bond markets has decreased, and the functionality of the corporate bond market is once again impaired.
2021
Stability in the Financial System (2021:2)
Sweden’s economy has largely recovered and there is good access to financing in the financial system. The Riksbank should therefore begin the phase-out of asset purchasing to avoid further increase of risk-taking. Amongst others, FI sees growing risks within the commercial real estate companies.
Stability in the Financial System (2021:1)
The economy is continuing to recover. Support measures have been necessary to speed up the recovery, but they need to be gradually phased out as the economy strengthens. This applies primarily to measures that are associated with the build-up of stability risks.
2020
Stability in the Financial System (2020:2)
The pandemic has triggered a deep economic recession in many countries, even if a slight recovery has begun. Extensive support measures have mitigated the economic impact and reduced the uncertainty on the financial markets. During the autumn, infection rates have once again begun to increase and several countries have introduced new restrictions, which will dampen the economic recovery, even though it is uncertain to which extent.
Stability in the Financial System (2020:1)
The coronavirus pandemic has resulted in an exceptional stress for the real economy. Governments, central banks and supervisory authorities have implemented significant measures to dampen the crisis. This has helped to reduce the uncertainty on the financial markets. But we are in still in the middle of the crisis, and there is considerable uncertainty going forward.
2019
Stability in the Financial System (2019:2)
The low interest rates are expected to remain low for a longer period of time. It could lead to greater risk-taking among various actors, and increased challenges for insurance undertakings.
Stability in the Financial System (2019:1)
Both the global and the Swedish economies appear to be slowing down. Low interest rates – which have resulted in high risk-taking and rising asset prices – are expected to remain low for a prolonged period of time. Resilience in the Swedish financial system is satisfactory in general. However, even if the banks’ resilience is satisfactory overall, FI makes the assessment that they need more capital to cover the risks in their lending to commercial real estate firms.
2018
Stability in the Financial System (2018:2)
The economy continues to be strong, both in Sweden and globally, but it is now showing signs of a slow-down. Interest rates have been low for a long period of time, which has led to high risk-taking and rising asset prices. As a result, the risks in the financial system are elevated. The resilience in the Swedish financial system is satisfactory in general but continued high growth in debt fuelled by lending and investments related to residential property and commercial real estate require monitoring.
Stability in the Financial System
The Swedish economy continues to be strong, and resilience in the financial system is satisfactory. However, a long period of low interest rates and strong growth has resulted in an elevated risk appetite, high asset prices and high debt globally, among Swedish households and on the commercial real estate market. The high level of indebtedness makes the financial sector more sensitive to shocks, and, if necessary, FI will take additional measures to strengthen the resilience.
2017
Stability in the Financial System (2017:2)
The Swedish economy continues to be strong and interest rates are extremely low, which contributes to high asset prices and low risk premiums. As global interest rates rise in the future, there is a risk for an abrupt increase in risk premiums and a fall in asset prices, which could be stressful for the financial system.
Stability in the Financial System
The Swedish economy is thriving, but a strong economy combined with low interestrates has resulted in high asset prices and rapidly rising household debt.
2016
Stability in the Financial System
The Swedish economy is strong, but the consequences for financial stability from the combination of rising resource utilisation and very low interest rates are difficult to assess. There is a risk that imbalances are building up, and even though they are difficult to identify and measure, they are very important to monitor.
Stability in the Financial System
FI makes the assessment that the resilience of the financial system in Sweden is satisfactory, but vulnerabilities remain. The Swedish banks have buffers, but they fund themselves in capital markets, which makes the banking system vulnerable to shocks to confidence. Liquidity in systemically important securities markets has not changed in recent years.
2015
Stability in the financial system 2015:2
Resilience in the Swedish financial system is satisfactory. However, the sharp rise in housing prices means that household debt is growing rapidly.
Stability in the financial system
Finansinspektionens assessment is that the resilience in the financial system is currently satisfactory.
2014
Stability in the financial system 2014
In FI's opinion, resilience in the fi nancial system is currently satisfactory. FI's increased capital requirements have helped improve the resilience of banks. At the same time, the banks' need for market funding makes the fi nancial system vulnerable to shocks.
Stability 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.
2013
Risks in the financial system 2013
Swedish banks are relatively strong, but they continue to be vulnerable to disruptions on the financial markets, and the development within the Euro zone continues to represent a risk to the Swedish financial system.
2012
Risks in the financial system 2012
Finansinspektionen’s (FI’s) 2012 risk report 2012 continues to focus on unease on financial markets, where the greatest risk to the Swedish financial system is still a deepened sovereign debt crisis in Europe. Because of low market rates, life insurance undertakings are under pressure, and FI now sees a risk of consumers ending up in a squeeze as the firms review their commitments. This year too, FI views the financial advice market with concern. In this market, consumers are being invited to invest in complex products while advisors receive commissions.
2011
Risks in the financial system 2011
Sweden has remained relatively stable in a turbulent period but during this time the risk level in the Swedish financial system has also risen. The uncertainty in surrounding markets has meant that banks’ liquidity risks and the impact of low interest rates on life insurance undertakings remain in focus. Finansinspektionen also believes there is a risk that the sale of complex products to consumers will increase.
2010
Risks in the financial system 2010
Finansinspektionen believes the risk level in the Swedish financial sector is lower than last year. Both Sweden’s economy and the situation on the financial market have improved. However, the uncertainty present in foreign markets represents a potential threat to Sweden’s development.
2009
Risks in the financial system 2009
Finansinspektionen is charged with ensuring that the financial system isstable and efficient and that consumer protection is adequate. We carry outthese assignments by conducting supervision of financial companies, whichincludes business intelligence, the granting of licences, preparation of egulations,operational supervision with controls of how companies act andpotential interventions.
2008
The Swedish banks can manage the recession (2008:18)
The four Swedish big banks have managed relatively well so far in the international bank crisis. Financing risks has been the greatest threat to Swedish banks during the autumn's turbulence. Thanks to measures by the Riksbank (Swedish central bank) and the Swedish National Debt Office, these risks have been managed to a great extent until the financing markets begin to function normally again.
2007
Stability of the Swedish financial sector (2007:16)
Swedish banks are only marginally exposed to the assets that are affected most by this fall's market turbulence. Rather, the increased risks are coupled to increased lending in the Baltic states. This is the finding of FI's report The stability of the Swedish financial sector, which will be submitted to the Government today.
2006
The stability of the Swedish financial sector (2006:14) - a summary
The large banking groups have grown even stronger financially during 2005 and the first half of 2006. Credit losses are virtually zero. With general economic growth likely to continue to improve, risks to systemic stability are low for the foreseeable future.
2005
The stability of the Swedish financial sector (2005:10) - a summary
Looking at the official reports, the Swedish life-insurers, previously severely hit by declining equity prices and interest rates, have improved their financial performance during the last two years. How-ever, if one looks at the figures that emerge if realistic interest rates are applied, the outcome is clearly more negative - in fact, solvency har decreased for six years.
2004
The stability of the Swedish financial sector (2004:9) - a summary
The Swedish life-insurers, previously severely hit by declining eq-uity prices, have clearly improved their financial performance during 2004. However, some of the companies are still vulnerable, due to low solvency. This requires a continued close monitoring by Fi-nansinspektionen
