Swedish FSA says "limited risk" of bank losses from mortgage defaults caused by coronavirus

Sweden's financial watchdog said on Thursday there was limited risk that mortgage defaults caused by the economic fallout of the coronavirus would cause extensive losses for the country's banks.

"Good resilience indicates that there is a limited risk that mortgages would cause extensive credit losses for banks," the FSA said in its mortgage market report.

However, the FSA added that the percentage of new mortgagors taking on a "high level of debt in relation to either their income or the value of the home" continued to be high.