Sweden first embraced property in the mid-1980s, when the country scrapped strict limits on lending, triggering a free for all that led to a housing collapse and the rescue of two banks, tipping the 10-million-strong country into recession.
The banks are closely watching the country's mid-sized property firms, several of whom are lumbered with a debt mountain built during a decade of rock-bottom interest rates and virtually free money., SBB, which borrowed to buy public property including social housing, government offices, schools, hospitals and police stations. It is now fast running through cash.
She said the country had a light debt load and could afford to borrow more to intervene to buoy the property sector should a threat emerge to wider stability. She addressed the possibility of giving credit guarantees or subsidised loans.