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Broad political agreement on expanded mandate for Finansinspektionen
Following broad political discussions with the centre-right parties and the Left Party, the Government has agreed to expand the ability of Finansinspektionen (the Swedish financial supervisory authority) to take measures to counteract financial imbalances on the credit market, e.g. with regard to household indebtedness.
The proposal aims to counteract 'macroeconomic and financial stability risks', or risks to the economy and financial system.
"This agreement offers us a clearer and shorter process for implementing possible new requirements on the credit market. Finansinspektionen will receive a formal mandate, enabling it to draw up proposals for measures that will then be approved by the Government," says Minister for Financial Markets Per Bolund.
Some uncertainty arose in early 2015 concerning the legal mandate for Finansinspektionen to take measures with regard to amortisation requirements, among other things. The Government and other parties agreed at that time that the possibility of introducing an amortisation requirement should be clarified.
The parties have now agreed to give Finansinspektionen a broader mandate to take measures in future, in addition to the existing amortisation requirement. Since this type of measure may have macroeconomic impacts and may interfere with the finances of private individuals, there is reason to introduce a requirement that Finansinspektionen must obtain the Government's consent before any new regulations are adopted.
"It is important that there is an ability to act quickly should we see a continued sharp increase of household indebtedness," says Mr Bolund.
A memorandum containing proposals for new legislation will circulated for comment by the Ministry of Finance.