FILE PHOTO: Swedbank sign is seen on the local headquarters building in Tallinn, Estonia March 25, 2019. REUTERS/Ints Kalnins/File Photo

STOCKHOLM (Reuters) - Swedbank’s recent problems with alleged money-laundering has affected trust in the bank, but the situation does not pose a problem to financial stability, the Swedish Financial Supervisory Authority (FSA) said on Monday.

“The FSA’s assessment is that there are no grounds for concern regarding the bank’s financial position, and therefore neither for financial stability,” the FSA said in a statement.

Swedbank is the subject of a joint probe by the Swedish and Baltic financial watchdogs into allegations the bank’s Estonian branch was used for money-laundering for over a decade.

The FSA said it expects the investigation to be completed in October when it will decide on whether to sanction the bank or not.