Regulatory Alerts2019-06-27
Added · Updated
Recommendation of the European Systemic Risk Board on medium-term vulnerabilities in the residential real estate sector in Sweden
The European Systemic Risk Board recommends that Sweden review structural policies, such as tax deductibility of mortgage interest, to curb incentives for excessive household indebtedness and house price overvaluation. Swedish authorities are required to closely monitor vulnerabilities related to household debt and property prices, tightening or activating borrower-based and capital-based macroprudential measures if monitoring indicates significant credit risks. Sweden must report on the implementation of these structural changes by 31 October 2022 and submit annual monitoring reports on macroprudential actions from 31 October 2020 until 31 October 2022.