The Macroprudential Division has the task of analysing and identifying risks and potential vulnerabilities in the Swedish financial system.
One principal task of the Division is therefore to analyse credit risk in non-financial corporations and property companies and the ability to repay in the household sector. The risk of loan losses in the banking system is largely determined by borrowers’ indebtedness and their ability to repay that debt. As the financial markets today are largely international in nature, the Macroprudential Division also monitors developments in credit risk abroad, particularly in markets where these developments are of importance for the Swedish banking system. In addition, the Division analyses more comprehensive matters relating to the financial and credit markets as a whole, the supply of capital and asset markets.
The Division's other main task is to follow and analyse developments in the Swedish banking sector with a particular emphasis on Föreningssparbanken, Nordea, SEB and Svenska Handelsbanken. These four banking groups make up the core of the Swedish financial system and are considered therefore to be crucial to the payment system in Sweden. The division monitors the banks’ strategies, risks and financial results to identify potential vulnerabilities but also to assess their resilience to these.
The work is conducted in cooperation with Swedish authorities such as Finansinspektionen (the Swedish Financial Supervisory Authority) and the Ministry of Finance, the Swedish banks and other financial market participants. The Division monitors international developments in the field and participates actively in international organisations such as the European Central Bank, ECB, the OECD and the Bank for International Settlements, BIS. A key aspect of the Division’s work is to contribute with analyses to the Financial Stability Report, for instance regarding risk developments in loans for households, firms and properties and developments in the major Swedish banks.
Organisation
The Macroprudential Division consists of 15 people and is headed by Lars Frisell.