## Sweden: Financial System Stability Assessment

_IMF Staff Country Reports, November 17, 2016_

## Source details

**Canonical URL:** [Sweden: Financial System Stability Assessment](https://www.imf.org/en/publications/cr/issues/2016/12/31/sweden-financial-system-stability-assessment-44404)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/sweden-financial-system-stability-assessment-44404/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/sweden-financial-system-stability-assessment-44404/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/sweden-financial-system-stability-assessment-44404/bundle-manifest.json)

## Bibliographic details
- Published: November 17, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475554618.002

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### Executive summary and scope
- Discusses findings of the Financial System Stability Assessment for Sweden.
- Emphasizes that the Swedish financial system is large and highly interconnected, placing a premium on the accompanying policy framework.
- Notes Sweden’s role as a regional financial hub with complex domestic and international linkages.
- Notes that macrofinancial risks have grown since 2011, including the rising share of highly indebted households.
- Stress tests suggest banks and nonbanks are largely resilient to solvency shocks, but concerns persist about the ability of bank models to capture unexpected losses.

### Major findings
- The financial system is among Europe’s largest relative to the size of the domestic economy.
- Complex domestic and international linkages reflect Sweden’s role as a regional financial hub.
- Macrofinancial risks have increased since 2011; example cited: the rising share of highly indebted households.
- Stress testing results:
  - Banks and nonbanks are largely resilient to solvency shocks.
  - Persistent concerns about the ability of bank models to capture unexpected losses.

### Policy implications and emphasis
- The size and interconnectedness of the financial system place a premium on a robust policy framework.
- Continued attention to household indebtedness and model risk in banks is warranted given rising macrofinancial vulnerabilities and stress-test caveats.

### Subjects and keywords (as listed)
- 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

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## Content in this bundle

- **Sweden: Financial System Stability Assessment; IMF Country Report 16/355; October 26, 2016**
  - [Sweden: Financial System Stability Assessment; IMF Country Report 16/355; October 26, 2016 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2016/_cr16355.pdf.md){rel="alternate" type="text/markdown"}
  - [Sweden: Financial System Stability Assessment; IMF Country Report 16/355; October 26, 2016 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2016/_cr16355.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/sweden-financial-system-stability-assessment-44404_