Sweden's largest bank SEB said the country's banks are strong enough to withstand the current uncertainties in the property sector.

 

Sweden's largest bank SEB said the country's banks are strong enough to withstand the current uncertainties in the property sector.  In an interview, SEB's CFO Masih Yazdi confirmed there is distress in the commercial real estate sector but not in the banks.  SEB, along with other banks such as Swedbank AB, Svenska Handelsbanken AB, and Nordea Bank Abp, are exposed to 4.6T kronor (~$419B) worth of loans between them.  The banks have pledged to help borrowers seeking to replace maturing bonds with bank loans as funding costs continue to increase.  Yazdi believes that unless there is a significant credit migration, banks do not need to hold excess capital beyond the required amount. Recent data has revealed that the country's residential market has stabilized after sharp declines in the past few months.