Swedish banking market is strong, despite potential housing market volatility
Nordic Credit Rating (NCR) applies a score of 'a-' for the Swedish banking market and views the domestic operating environment as stable. Swedish banks have outperformed most international peers in recent years due to steady lending growth and increased margins. Sweden's economy has been spurred by significant construction activity to address a material housing shortage and accommodate the growing population. However, we expect rising interest rates and a recalibration of housing prices to reduce the pace of capital investment and weigh on economic growth over the next two years. The banking
