Cover Selected Issues Papers
Sweden’s Corporate Vulnerabilities: A Focus on Commercial Real Estate: SWEDEN
Author:
Svetlana Vtyurina
Search for other papers by Svetlana Vtyurina in
Current site
Google Scholar
PubMedClose
and
Rhiannon Sowerbutts
Search for other papers by Rhiannon Sowerbutts in
Current site
Google Scholar
PubMedClose
Series:
Selected Issues Papers
Volume/Issue:
Volume 2023: Issue 024
Language:
English
Publication Date:
21 Mar 2023
DOI:
https://doi.org/10.5089/9798400235962.018
ISBN:
9798400235962
ISSN:
2958-7875
Pages:
13
Keywords:
Sweden; Corporate Vulnerabilities; Commercial Real Estate; CRE; Real Estate Economics; Stress Test; Macroprudential Policy; CRE stress test result; CRE firm; CRE indicator; CRE sector; credit line maturity; Stress testing; Lines of credit; Corporate sector; Securities markets; Bank credit; Global
Legal-disclaimer:
IMF Selected Issues Papers are prepared by IMF staff as background documentation for periodic consultations with member countries. It is based on the information available at the time it was completed.
Download PDF (2.6 MB) Download Epub
Commercial Real Estate (CRE) debt constitute a large portion of corporate debt. Due to the funding structure this creates substantial risks for the financial system and the real economy, in general, due to broader spillover effects. Stress tests, conducted to assess the resilience of CRE sector, show that the median interest rate coverage would drop below one in a severe scenario, resulting in a ¾ of firms with debt-at-risk. CRE sector’s concentration, interconnectedness and insufficient disclosure of liabilities calls for close monitoring of liabilities structure and adjusting banks’ capital levels to better reflect current risks.

Supplementary Materials

  • Collapse
  • Expand
Cover Selected Issues Papers
Selected Issues Papers
Publisher:
International Monetary Fund
Volume 2023: Issue 024