Sweden's financial system marginally better -FSA

STOCKHOLM Aug 17 (Reuters) - The Swedish financial system is in marginally better shape now than in June when the Swedish Financial Supervisory Authority published its last stress test of Swedish banks, a watchdog official said on Monday.

"I think we have seen a slight improvement in the situation due to the lower rate levels and due to the gradual picking up of the interbank market internationally," said Uldis Cerps, head of FSA's Prudential Supervision Department.

"But I would say that the improvement is marginal."

The watchdog said in June the country's main banks would all be able to manage extreme pressures created by a severe recession in Sweden, and also in the Baltic region to which mainly Swedbank (SWEDa.ST) and SEB (SEBa.ST) are heavily exposed. [ID:nLA498286].

It said then that there was no need for the big banks to strengthen their capital base based on regulatory requirements.

Earlier on Monday, Swedbank announced a surprise rights issue -- its second in the past year -- to raise $2.1 billion. [ID:nLH352739]

Swedish Financial Markets Minister Mats Odell said the share issue was a sign that Sweden's financial markets were starting to recover. [ID:nLH502646] (Reporting by Daniel Dickson, writing by Anna Ringstrom, editing by Mike Peacock)