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Real Estate

Sweden's Finansinspektionen: Banks’ Lending To Commercial Real Estate Firms Requires More Capital

by posted 10months ago 37 views
Finansinspektionen (FI) considers the firms in the Swedish financial system to have sufficient resilience for withstanding a weaker economy. However, commercial real estate firms are vulnerable to shocks. FI therefore makes the assessment that the banks need more capital for these exposures. This is one of the conclusions in FI’s first stability report for the year, which is being presented today. FI has noted that the economy in both Sweden and the rest of the world is starting to slow down, and the low interest rates are expected to remain low for a prolonged period of time.

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