Riksbank calls for housing and tax reforms to reduce financial risks

Sveriges Riksbank has said Sweden’s government should reform tax and housing policy to help deal with rising financial vulnerabilities.

It also called on the country’s banks to avoid making large dividend payments and share buybacks in its financial stability report, published today (November 9). Commercial banks needed to address their exposure to highly leveraged real estate firms, it warned.

“After many years of low inflation and very low interest rates, increasing asset prices and rising