Sweden: Financial Sector Assessment Program–Technical Note on Macroprudential Policy

International Monetary Fund

No 2023/182, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper highlights the technical note on Macroprudential Policy for the Sweden financial sector assessment program. The increase in market-based finance challenges macroprudential policy. Tools are not yet well developed for borrower-based measures beyond those applying to lending to households, and many market based finance participants are outside national regulatory perimeters. The authorities should make more use of ‘soft power’ and joint communication, especially when risks become more systemic, as with market-based finance. There are still data gaps for almost all sectors. Finansinspektionen and the Riksbank need to better model tail risk, spillovers, and interconnectedness. As the financial system becomes increasingly complex and interlinked with the risk of market-based finance, the need for these models will increase. Short of introducing new borrower-based measures to curb market funding, Commercial Real Estate firms should be made to improve their disclosures, including on contingency plans when market funding dries up.

Keywords: Sweden FSAP; capital markets department; Macroprudential authority; FSAP's finding; risk modeling; Financial sector stability; Systemic risk; Mortgages; Macroprudential policy; Financial sector risk; Global; Baltics (search for similar items in EconPapers)
Pages: 45
Date: 2023-05-25
New Economics Papers: this item is included in nep-mfd
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=533822 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2023/182

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().