Quarterly presents SBAB a ‘risk index, where the bank’s analyst is testing what would happen to the household’s financial position if the share prices would fall, housing prices would go down and if they currently low interest rates would rise. The stress test for the second quarter shows that household resistance increases and reduces risk exposure, and that for the third consecutive quarter. This despite the rapid price increases in the housing market.
– Cautious households do not increase their debt at the same rate as the asset value rises, and moreover, they continue to put aside a lot of money for risk-free savings accounts, says Tor Borg, chief economist at SBAB , in a statement.
According SBAB has net household assets more than quadrupled in twenty years. These are mainly the higher values of our homes that lies behind the increase, but also rising share prices. During the last quarter improved airbag against risk exposure, however, a record high savings rate on risk-free savings accounts. Figures from Statistics Sweden show that savings deposits increased by as much as 44 billion during the first half, despite the very low savings rates.
Still, however, Swedish household’s risk exposure at a historically high level. To get down to a historical average normal level of risk SBAB has calculated that households would need to amortize debt or increase its risk-free savings accounts of about 43 billion, or 4 000 per person.
– Both assets and liabilities are, in relation to household income, at record-high levels. This means that household budgets are very sensitive to changes in the financial and housing markets than 15-20 years ago, says Tor Borg, chief economist at SBAB.
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