Challenges to financial stability
Inflation is high and the central banks have therefore tightened monetary policy swiftly. One important reason for the strong rise in inflation is Russia’s invasion of Ukraine, which has also caused major disturbances in the energy market in Europe. Growth prospects in Sweden and abroad have deteriorated and the risks to financial stability have increased. In the Swedish financial system, the greatest risk is the banks’ exposure to the highly indebted commercial property companies, although the high level of indebtedness among households is also making the system vulnerable.The risks in the