Riksbank urges introduction of 5% leverage ratio
Sweden’s central bank sounds the alarm to fellow supervisor
A leverage ratio of 5% should be introduced in Sweden “as soon as possible”, the nation’s central bank has said, amid concerns that vulnerabilities in the housing market could spill over to the rest of the economy.
Sweden is yet to confirm the minimum level of the leverage ratio, but 5% would exceed the minimums stipulated by Basel III and would also be marginally higher than the current average among Sweden’s four major banks.
“There are several vulnerabilities and risks linked to the banking
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