Sveriges Riksbank calls for higher risk weights on mortgages
The risk weight floor for Swedish mortgages should be raised from 15% to 25%, the Sveriges Riksbank argues in its latest financial stability report. It thus sides with an earlier assessment by the country's Financial Supervisory Authority.
According to the Riksbank, the Swedish financial system is stable, but the size and concentration of the Swedish banking sector, as well as the banks' extensive market funding, "create vulnerabilities that may have a negative impact on financial stability".
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