Riksbank Governor: High inflation and rising interest rates are testing the resilience of the Swedish financial system.

Riksbank Governor: High inflation and rising interest rates are testing the resilience of the Swedish financial system.

Broad housing and tax policy reforms are needed to make housing markets work better and address risks associated with household indebtedness.

Vulnerabilities facing Sweden mainly consist of banks’ and bondholders’ exposure to highly indebted commercial property companies, although high household indebtedness also makes the system vulnerable.