Swedish Central Bank warns financial system stable, but risks if pandemic drags on

The old town, 'Gamla Stan', in Stockholm, Sweden, EPA/MAURITZ ANTIN

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Sweden’s financial system is stable, but the risks to financial stability will increase the longer the pandemic and the social distancing measures to contain it continue, Sweden’s central bank said on Wednesday.

“If the crisis becomes prolonged, the risks to financial stability will increase,” the central bank said in a regular Financial Stability report.

“Without further economic policy measures, credit losses in the banking sector then risk increasing to such an extent that banks may have problems maintaining credit supply.”

Via Reuters

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