Ingves: Hearing on macroprudential policy
Date
10/09/2013
It is good that the Government has presented a proposal for the organisation of macroprudential policy. So commented Riksbank Governor Stefan Ingves on Tuesday when he took part in an open hearing on macroprudential policy for better financial stability at the Riksdag Committee on Finance.
Mr Ingves began the hearing by observing that the Riksbank has long called for clearer responsibility and new tools to manage and prevent financial crises. He said that it is good that the responsibility for macroprudential policy is being given to one authority. Mr Ingves also pointed out that the Riksbank's mandate remains unchanged. This means that the Riksbank still has responsibility for safeguarding financial stability. Mr Ingves emphasised that it is now fairly urgent to ensure a Swedish toolbox is in place to be able to manage various risks to financial stability. Some of the macroprudential tools and measures the Riksbank has requested have been proposed by the Government, such as higher risk weights for mortgages and a better amortisation environment. He welcomed these proposals, as they create better conditions for reducing the risks linked to high household debt. At the same time, Mr Ingves pointed out that EU legislation and on-going work on macroprudential issues wthin several of the European institutions is creating a framework for Swedish macroprudential policy. Given the deregulation and increasing financial integration that has been under way for some time now, a successively closer EU cooperation on these issues is a natural and desirable process.
Others who took part in the hearing were Peter Norman, Minister for Financial Markets, Martin Andersson, Director General of Finansinspektionen, and Hans Lindblad, Director General of the Swedish National Debt Office.
