Sweden: Financial Sector Assessment Program-Technical Note-Systemic Risk Oversight Framework and Management

IMF Staff Country Reports, October 5, 2017

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Sweden: Financial Sector Assessment Program-Technical Note-Systemic Risk Oversight Framework and Management

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Bibliographic details

• Published: October 5, 2017
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781484322499.002

Executive findings

• The Technical Note discusses findings and recommendations from the Financial Sector Assessment Program for Sweden on systemic risk oversight framework and management.
• To promote accountability, the law should clarify the allocation of macroprudential powers between the government and the Finansinspektionen (Financial Supervisory Authority, FI).
• The law should grant the FI a clear legal mandate for macroprudential policy, with full operational independence.
• The Financial Stability Council, or a similar body—excluding the Ministry of Finance—should have the legal authority to issue recommendations, preferably with a “comply or explain” approach.
• The law should ensure that the Sveriges Riksbank’s expertise in financial stability analysis finds a clear institutional role in the oversight of systemic risk.

Policy recommendations

• Clarify legal allocation of macroprudential powers between:
  • the government, and
  • the Finansinspektionen (FI).
• Grant the FI:
  • a clear legal mandate for macroprudential policy, and
  • full operational independence.
• Establish the Financial Stability Council, or a similar body (excluding the Ministry of Finance), with legal authority to issue recommendations using a “comply or explain” approach.
• Ensure Sveriges Riksbank’s expertise in financial stability analysis has a clear institutional role in systemic risk oversight.

Thematic scope and subjects

• Subject areas covered:
  • Amortization
  • External debt
  • Financial sector policy and analysis
  • Financial sector stability
  • Housing prices
  • Macroprudential policy
  • Prices
  • Systemic risk
• Keywords explicitly included:
  • Amortization, amortization period, assessment process, Baltics, bank, banking supervision staff, coverage ratio, CR, FI, FI director general, FI view, Financial sector stability, FSC assessment, FSC secretariat, house price growth, house price increase, household debt, Housing prices, ISCR, LTV ratio, Macroprudential policy, risk weight, Systemic risk

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