Surge in coronavirus infections can affect financial stability, Swedish FSA says

STOCKHOLM (Reuters) - The second wave of COVID-19 that has hit Europe will dampen economic recovery and could affect financial stability in the longer term, Sweden's Financial Supervisory Authority said on Wednesday.

It said the measures to minimize the effect on economies meant many parts of the financial system were vulnerable, pointing to concerns over high levels of household borrowing, the commercial real estate sector as well as financial firms and markets.

(Reporting by Simon Johnson; editing by Johannes Hellstrom)