Maria Lindholm, who with her partner is buying an apartment in Stockholm’s Soedermalm district, said they’ll probably opt for the riskiest variable-rate loan to cover part of the sale price. The mortgage cost resets every three months based on the direction of interest rates.
Sweden, home to Europe’s safest banks, says the key to avoiding the next financial crisis is to ignore calls for harmonized capital rules and apply individual regulatory standards to match national risks.
Sweden’s financial regulator will disregard central bank calls to assign higher risk weights to mortgage assets and opt instead for tougher stress tests to ensure lenders have enough capital to guard against losses.
Sampo Oyj, the biggest investor in Nordea Bank AB, said a rush by firms to sell bonds will help the bank generate capital and raise its dividend ratio even as Sweden warns lenders to think twice before doing so.