Bankers saw Ingves – Vestmanlands County Newspaper

The risk of a Swedish mortgage crisis has increased, according to the first stability report from the Riksbank. Bank warns that it can be very costly for the economy and calls for a battery of measures to reduce risks and strengthen the resilience of the banking system.

“Deplorable”

Among other things, wants to tighten banks’ capital requirements and introduce a so-called leverage ratio for banks, which would involve the share capital of the Bank in relation to lending.

Bankers Association CEO Hans Lindberg warn that the Riksbank’s proposal may give significant negative effects on the Swedish employment and growth.

“It is therefore regrettable that the Riksbank does not recognize any comprehensive impact assessment of its proposal. Without this, the costs of measures not be proportionate to the risk of financial imbalances “writes Lindberg commented mejlad said.

Stability report comes after a turbulent spring with large price movements in financial markets, including sharp falls in share prices of a number of European banks.

Large debt

For the Swedish part is the starting point difficult. Households and banks are vulnerable, exposed to a housing market characterized by high indebtedness and rising prices, according to the Riksbank, which states that the probability of falling prices in the housing market has increased.

The Swedish banks are large in relation to the Swedish economy, closely interlinked with each other and at the same time large exposure to the housing sector, reason Riksbank. In addition, they are dependent on its reputation for its financing, which largely consists of market loans in foreign currency.

“The consequences for the Swedish economy during a serious illness that affects the Swedish banking system can be very large,” writes Riksbank in its Financial stability report.

in addition to stricter capital Riksbank wants, among other things, see a tax reform where the interest deduction be reviewed and a skuldkvotstak, where lending is limited based on how much income a household has.