A new regulatory package ‘Basel IV’ will do little to reduce the risk of a new financial crisis. Given the robustness of the banking sector in Sweden, net costs to the Swedish economy will exceed benefits with a large margin.
Some of the measures are proposed in order to reduce risks to financial stability such as, for example, rapid rises in house prices. We, however, conclude in our latest study for the Swedish Bankers’ Association that policies addressing the root causes of these rises would be more effective.
For further information, please contact Sigurd Næss-Schmidt