The world's financial markets are characterized by a high appetite for risk, which is evident in the fact that many of the world's stock markets are trading at record levels, despite the uncertain environment of war and tariffs.
"In such an environment, unexpected events can trigger strong market movements that quickly spread throughout an interconnected global financial system," the Riksbank writes.
Swedish banks are fundamentally strong and resilient.
"However, they have a high level of external dependence and are therefore vulnerable to global disruptions," writes the Riksbank.
If interest rates rise, households with high borrowing are at risk.
"The proposal for more generous loan rules in the form of reduced amortization requirements and higher mortgage ceilings could make households even more sensitive to such disruptions in the future," writes Sweden's central bank, which wants debt-to-income ratio ceilings to remain in the regulatory system.
