Regulatory Alerts2026-05-29
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The War in the Middle East Poses Risks to Financial Stability
The Riksbank warns that prolonged conflict in the Middle East, combined with global vulnerabilities like high public debt and cyber threats, poses significant risks to financial stability despite a resilient global system. While Swedish banks maintain strong liquidity and resilience, the central bank highlights persistent structural risks in the commercial real estate sector and highly indebted households with short interest fixation periods. To mitigate these domestic vulnerabilities, the Riksbank maintains the countercyclical buffer rate at 2 percent and strongly urges the government and Riksdag to implement a new income-based debt-to-income cap to ensure long-term household debt sustainability.
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