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SWEDEN: Financial Stability Outlook Has Improved, But Risks Remain - FSA

SWEDEN

The Swedish Financial Supervisory Authority (FSA) notes that "the outlook for financial stability has improved somewhat in the past six months" in its H2 2024 report. This arises due to resilient banks, dampenened credit growth and expectations for a cyclical recovery in consumption on the back of lower interest rates.

  • Meanwhile, commercial real estate (CRE) firms "have continued to adapt to the higher interest rates", with improved access to financing. The FSA writes that "firms with high indebtedness need to continue to reduce their debt and strengthen their financial position".
  • The main risk to financial stability comes from "the uncertain global economic and geopolitical situation", with a deterioration in global security increasing the risk of cyber attacks on the system.
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The Swedish Financial Supervisory Authority (FSA) notes that "the outlook for financial stability has improved somewhat in the past six months" in its H2 2024 report. This arises due to resilient banks, dampenened credit growth and expectations for a cyclical recovery in consumption on the back of lower interest rates.

  • Meanwhile, commercial real estate (CRE) firms "have continued to adapt to the higher interest rates", with improved access to financing. The FSA writes that "firms with high indebtedness need to continue to reduce their debt and strengthen their financial position".
  • The main risk to financial stability comes from "the uncertain global economic and geopolitical situation", with a deterioration in global security increasing the risk of cyber attacks on the system.