Economy. high household debt continues to worry Financial Stability Council even if the situation on the financial market is stable, according to Finance Minister Per Bolund (MP).
– As home prices continue to increase, we are in the Council more concerned now of household debt than six months ago, when we had the last meeting, he said.
the Council is made up of Government, the Riksbank, the Swedish National debt Office and Finansinspektionen. At Tuesday’s meeting was attended, besides Finance Minister Per Bolund, First Deputy Governor Kerstin af Jochnick, Director General Hans Lindblad and the Director General of the Financial Supervisory Authority, Hans-Ole Jochumsen. During the meeting discussed the overall stability of the situation, the need for analysis and possible action, as well as future work to enhance financial stability.
Crisis exercises planned
– We updated each other about how we see the situation right now and it showed that we have a unified picture of the situation, that it is stable, but that there are vulnerabilities. Increased household indebtedness and rapidly rising house prices make household finances vulnerable to shocks. We have introduced amortization requirements, but it is currently too early to say what this will have for effect. We will have to wait a few months to see the total impact, says Bolund.
During the meeting the Council also discussed the authorities to start practicing different scenarios for potential emergencies.
– How these exercises will look like, I can not say anything for now, says Per Bolund.
Brexit discussed
the upcoming referendum in the UK and a possible Brexit was also discussed at the meeting.
– If Britain would vote for a Brexit and you decide to leave the EU cooperation, it will have an impact on the market, but we are well prepared, says Bolund.
Neither the FSA or the Riksbank wanted to leave a comment for TT, but referred to the Financial Secretary.
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