Swedish central bank says housing market biggest risk to financial system

[STOCKHOLM] High levels of household debt and uncertainty around house prices are the biggest threat to Sweden's financial system, the central bank said in its semi-annual Stability Report on Wednesday.

"If the uncertainty on the housing market persists, or if housing prices fall further, there is a risk that more actors on the housing market will encounter problems," the central bank said in statement.

"In an unfavourable scenario, this could involve problems spreading to the rest of the economy and to the financial system."

REUTERS