The Swedish financial sector is susceptible to "shocks" due to elevated asset prices and high debt, despite strong economic growth and satisfactory resilience in the financial system, said Sweden's financial regulator, Finansinspektionen, in its first stability report of the year.
However, the risk of problems in the wider European banking sector spilling over into Sweden is low, because better profitability and fewer bad loans among the continent's banks have improved their resilience.
The regulator also said resilience in Sweden's financial system is satisfactory.
