Abstract: Regulatory Regime Change in the Swedish Residential Mortgage Market

Frida Östman


In this essay, I analyze the Swedish residential mortgage market regulations during the post-World War II era, with an emphasis on the regulatory regime change of the mid-1980s. The most significant changes were directed toward abolishing regulations. More players could enter the market, creating a need for regulation to cover a larger area of finance. The government had previously provided strict incentives for following the rules, but the changes meant that the government let the market find its own way to provide incentives. Thus, the motivating structure for the government, borrowers, and lenders changed from strictly government-controlled to market-controlled, from rigidly regulated to deregulated.

BEH On-Line Paper