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Swedish central bank: Rising household indebtedness poses the greatest risk to financial stability

These are the key point from the  Swedish central bank’s financial stability report:

  • Swedish Central Bank said high and growing household indebtedness continues to pose the greatest risk in the Swedish economy
  • Swedish Central Bank said there are structural vulnerabilities and risks linked to the banking system in Sweden – financial stability report  
  • Swedish Central Bank said risks linked to international developments are assessed to be greater now than in spring  
  • Swedish Central Bank said  in an unfavorable scenario, housing market problems could spread to the rest of economy and to the financial system  
  • Swedish Central Bank said it also considers important that foreign supervisory authorities ensure that foreign banks with substantial operations in Sweden are subject to equally high requirements for liquidity and capital as Swedish banks.
     

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