On the Agenda: The Swedish FSA’s mandate and current challenges
Erik Thedéen, Director General, Swedish FSA
Stockholm, September 13, 2018
Responsibilities
Parliament
Government
National Debt Office
Finans- inspektionen
The Riksbank
Deposit insurance Resolution
Macropru Supervision Secondary legislation
Monetary policy Efficient payments system
Lender of last resort Primary legislation
Financial Stability Council
Parliament
Government
National Debt Office
Finans- inspektionen
The Riksbank
Financial stability
- Capital req - Liquidity req - CCB
Consumer protection
- LTV-cap
- Consumer credit
Counteract financial imbalances
- amortization
- DTI-cap
Unique situation
Source: NIER and Riksbank
-4 -2 0 2 4 6 8
-8 -6 -4 -2 0 2 4
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 GDP-gap (left axis) Repo rate (right axis)
Accelerating total debt
0 20 40 60 80 100 120 140 160 180
1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
Non-financial corp Households Total Share of GDP, per cent
Source: Statistics Sweden
What have we done?
Increase resilience
Decrease
risks
Curb systemic risk
Per cent
Source: Finansinspektionen
Note: Loan-to-value (LTV) and Loan-to-(gross)income (LTI).
LTV
LTI
Effects
Per cent
Source: Finansinspektionen
Note: Mortgage bar for LTV-cap shows ‘Total Debt’
-8 -7 -6 -5 -4 -3 -2 -1 0
Capital requirements
LTV cap Amortization:
LTV-based
Amortization:
LTI-based
Mortgages Real Estate PricesMortgages, the Swedish way
Investor
Bank Borrower
Mortgage
Mortgage payments Funding
Covered bonds
Households
Deposits
Interest
Alternative structure
Short term finance
Portfolio manager
Borrower Investor
Mortgage Fund underwriter
Mortgage
Mortgage payments
Mortgage Funding
Fund
share
Funding
Housing prices have stabilized
Index January 2005 = 100
Source: Valueguard
Note: Seasonally adjusted 100
150 200 250 300 350
2005 2007 2009 2011 2013 2015 2017
Weighted Tenant-owned apartments Single family homes
High activity
Source: Valueguard
Note: Seasonally adjusted
