IMF Staff Country Reports

Sweden: Financial System Stability Assessment

November 17, 2016

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Sweden: Financial System Stability Assessment, (USA: International Monetary Fund, 2016) accessed November 21, 2024

Summary

This paper discusses the findings of the Financial System Stability Assessment for Sweden. The Swedish financial system is large and highly interconnected, putting a premium on the accompanying policy framework. Relative to the size of the domestic economy, the financial system is among Europe’s largest. It features complex domestic and international linkages, reflecting Sweden’s role as a regional financial hub. However, the macrofinancial risks have grown since 2011, for example the rising share of highly indebted households. Stress tests also suggest that banks and nonbanks are largely resilient to solvency shocks, but concerns persist about the ability of bank models to capture unexpected losses.

Subject: Banking, Covered bonds, Financial institutions, Financial sector policy and analysis, Financial sector stability, Housing prices, Insurance, Prices, Stress testing

Keywords: Asset, Asset liquidation, Assets pro-rata, Bank, Bank assets, Covered bonds, CR, Cross holdings, Europe, Financial sector stability, Financial system, Foreign currency, Global, Household assets, Housing prices, Hurdle rate, Insurance, ISCR, Return on equity, Stress testing

Publication Details

  • Pages:

    61

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2016/355

  • Stock No:

    1SWEEA2016003

  • ISBN:

    9781475554618

  • ISSN:

    1934-7685