FCG Insight – Responsible consumer credit lending

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The Swedish households’ combined loans to financial companies are now more than SEK 4 200 billion. More than 80 per cent of the loans comprise mortgage loans. Debt is growing rapidly and has doubled in just over ten years. In recent years, non-collateral credits (commonly known as consumption loans) have grown fast, in particular the large consumption loans. Lending volume for consumption loans over SEK 250,000 was almost five times greater in 2018 than ten years earlier. The Swedish Financial Supervisory Authority (“SFSA”) has communicated, in the Consumer Protection Report 2020, that unaffordable lending will be in scope for the SFSA´s prioritized areas of supervision during 2020. What impact will this have on the area? Anna Fryklund and Eric Blomdahl explore this in our latest FCG Insight.

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