High encumbrance threatens Swedish banking system

11 Oct 2012

Sweden’s financial regulators are concerned at how much encumbrance is on banks’ balance sheets. The country’s borrowers are among the most encumbered in Europe, and despite efforts to increase deposits, new covered legislation could make the situation worse.

The Council for Cooperation on Macroprudential Supervision, made up of representatives from the Swedish central bank and Financial Supervisory Authority, met for the second time on October 2. The Council views encumbrance as a potential threat to the country’s financial system and the Swedish taxpayer, minutes from the ...

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