Sweden's Riksbank published its Financial Stability Report, assessing that financial stability risks remain shaped by global uncertainty and elevated risk-taking in markets, even as the global financial system has so far shown resilience. The report argues for preserving post-crisis regulatory standards and ensuring the framework also captures systemically relevant non-bank actors, while highlighting household leverage, commercial real estate vulnerabilities and fast-growing stablecoins as key risk areas. The major Swedish banks are described as fundamentally strong, with profitability, low loan losses and comfortable capital and liquidity margins, but exposed to external shocks through reliance on foreign-currency funding and operational dependencies, including cyber threats and third-party service providers. The Riksbank warns that a rise in global interest rates and risk premiums could transmit to Swedish households and property companies given high indebtedness and short interest-fixation periods, and it cautions that proposed mortgage-rule easing via reduced amortisation requirements and a higher loan-to-value limit could increase vulnerability and fuel a housing price and debt spiral, arguing that a loan-to-income limit should be part of the macroprudential toolkit. On stablecoins, it notes rapid market expansion and flags potential risks including redemption runs, greater European dependence on foreign infrastructure, lack of transparency and criminal financing, underscoring the need for international regulatory frameworks to be adapted and harmonised in line with market developments.

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