Proposal to expand Finansinspektionen’s mandate regarding additional macroprudential tools
The Ministry of Finance proposes that Finansinspektionen should be able to take additional measures to counteract financial imbalances on the credit market. A Ministry of Finance memorandum containing proposals for new legislation is being circulated today for comment.
"The continued increase of household indebtedness is cause for concern. This proposal means that the process to implement new requirements, for example that may impact the mortgage market, will be clarified and shortened. We must be able to act quickly should we see an alarming sharp increase of household indebtedness," says Minister for Financial Markets Per Bolund.
The memorandum is based on the October 2016 political agreement between the Government, the centre-right parties and the Left Party on an expanded mandate for Finansinspektionen.
The main proposal in the memorandum is that Finansinspektionen's legal mandate to take measures to counteract financial imbalances on the credit market, such as household indebtedness, should be strengthened. Since this type of measure may have macroeconomic impacts and may affect the finances of private individuals, there is reason to introduce a requirement for Finansinspektionen to obtain the Government's consent before any new regulations are adopted.
It is proposed that the legislative amendments enter into force on 1 February 2018.