Sweden (officially the Kingdom of Sweden) is a prosperous, democratic country in Northern Europe with a high standard of living, a low level of corruption, and a high level of education and health care.
Swedish economy is characterised by a large, knowledge-intensive and export-oriented manufacturing sector; an increasing, but still small, business service sector. Main industries of Swedish economy are iron and steel, precision equipment, wood pulp and paper products, processed foods, motor vehicles.
Swedish banking sector is dominated by "Big Four" domestic banks, operating as universal banks. There are also a number of foreign-controlled banks, and regional savings banks. The "Big Four" Swedish banks have prominent presence in other Scandinavian Countries and Baltic States.
1 EUR = 9.9688 SEK (2018-02-20)
During the last 11 years EURSEK exchange rate was within the range 8.3362 - 11.4524, reaching its maximum in Feb 2009 and falling to its minimum in Aug 2012.
Chart 1. Euro to Swedish krona/kronor (EURSEK). Source: ECB.
|Nominal GDP (2016)||Nominal GDP per Capita (2016)||Real GDP Growth (2016)|
|462.4 bln EUR (+0.04%)||46 600 EUR (+0.03%)||3.3 % (2015: 4.1 %)|
According to Eurostat, nominal GDP of Sweden in 2016 was 462.4 bln EUR.
Sweden outperforms the European Union in terms of real GDP growth with the average annual differential coming to 0.7% over the past 10 years (2006 - 2016). In 2016 real GDP growth was 3.3% which was above the Euro Area average (1.8%) and above the European Union average (1.9%). Real GDP growth in 2017 - 2022 are IMF's estimates.
Chart 2. Real GDP Growth in Sweden. Source: Eurostat, International Monetary Fund.
In 2016, nominal GDP per capita in Sweden was 46 600 EUR.
Sweden has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 21.7% over the past 10 years (2006 - 2016). GDP per capita at PPP in 2017 - 2022 are IMF's estimates.
Chart 3. GDP Per Capita at Purchasing Power Parity in Sweden; European Union = 100.
|CPI, MoM (Sep 2017)||CPI, YoY (Sep 2017)||CPI, Year Average (2016)|
|0.1 % (Aug 2017: -0.2 %)||2.2 % (unchanged)||1.1 % (2015: 0.7 %)|
According to Eurostat, inflation rate in Sweden in 2016 expressed as annual percentages of average consumer prices was 1.1% which was above the Euro Area average (0.2%) and above the European Union average (0.3%). Inflation rates in 2017 - 2022 are IMF's estimates.
Chart 4. Inflation Rate in Sweden. Source: Eurostat, International Monetary Fund.
|Unemployment Rate (2016)|
|6.9 % (2015: 7.4 %)|
|Government Bond Yield (Sep 2017)|
|0.62 % (Aug 2017: 0.63 %)|
Chart 5. Government bond yield of Sweden. Source: Eurostat.
|AAA (highest credit quality), outlook stable||Aaa (prime), outlook stable|
Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.
Withholding tax rates applied on payments of interest and dividends in Sweden are shown in Table 1.
|Natural person, resident||30.0 %||30.0 %|
|Natural person, non-resident||30.0 %||0.0 %|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Sweden signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Sweden and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 1 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Sweden signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Sweden and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):
Sweden signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Sweden has signed bilateral agreements with 56 jurisdictions to automatically receive information:
Sweden has signed bilateral agreements with 68 jurisdictions to automatically send information:
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
|FATCA Status in Sweden|
|IGA in effect since 08 August 2014, Model 1|
Sweden has FATCA agreement with the U.S. in effect since 08 August 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Sweden are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Swedish financial accounts hold in U.S. financial institutions will be reported to Swedish authorities.
|Financial Market Development|
|5.1 (max 7.0), 10th out of 138 countries|
|5.8 (max 7.0), 19th out of 138 countries|
According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Sweden is scored 5.1 out of maximum 7.0 and ranked 10th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 5.2 (22nd place).
Chart 6. Financial Market Development in Sweden. Source: WEF.
Soundness of banks is scored 5.8 bringing Sweden into the 19th place.
Chart 7. Soundness of Banks in Sweden. Source: WEF.
|Maximum Protected Amount|
|100 000 EUR|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Sweden are summarised in Table 2.
|Scheme Participants||all credit institutions operating in Sweden, branches of Swedish banks abroad|
|Scheme Exemptions||branches of foreign banks (covered by their home countries)|
|Eligible Depositors||private individuals, companies and other legal entities|
|Covered Accounts||deposits in all types of accounts|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||EUR|
Table 2. Deposit guarantee scheme in Sweden.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
|Local Currency (Swedish krona/kronor)||Foreign Currency|
|Aaa (prime)||Aaa (prime)|
Local currency (Swedish krona/kronor) deposit ceiling for Sweden is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
|Average Deposit Rate (Aug 2017, SEK)|
|0.08 % (Jul 2017: 0.07 %)|
Chart 8. Deposit Rates in Sweden. Source: ECB.
|Number of Banks|
|Consolidated Assets (2016)|
|1 593.41 bln EUR (-1.79%)|
|Recent Changes (2016)|
|new banks: 1, closed banks: 1|
Currently there are 166 credit institutions operating in Sweden.
In 2016 consolidated banking assets in Sweden were 1 593.41 bln EUR. The consolidated banking assets' evolution is shown at Chart 9 below.
Chart 9. Consolidated banking assets in Sweden.
Recent structural changes (2013 - 2016) of the banking sector of Sweden are summarised in Table 3.
|Number of Opened Banks||0||7||1||1|
|Number of Closed Banks||1||11||5||1|
Table 3. Recent structural changes in the banking sector of Sweden.
The list of the most recently opened banks in Sweden is provided in Table 4.
|Ecster AB (new)||June 2016|
|Lån & Spar Sverige, bankfilial (new)||November 2015|
|Aros Kapital AB (new)||December 2014|
|UBS (Luxembourg) S.A. Sweden Bankfilial (closed)||December 2014|
|Bank of China (Luxembourg) S.A. Stockholm filial (new)||August 2014|
|Credit Suisse International,(UK)Bank Sweden Branch (filial) (new)||August 2014|
|Ålandsbanken Abp(Finland),svensk filial (new)||August 2014|
|Barclays Bank PLC Filial Stockholm (new)||June 2014|
|Söderberg och Partners Placeringsrådgivning AB (closed)||March 2014|
Table 4. The most recently opened banks in Sweden.
All the credit institutions operating in Sweden can be classified into several categories. Table 5 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||34|
There are 34 branches of foreign banks from 10 different countries in Sweden. Table 6 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|
|1||Nordea Bank AB|
|2||Skandinaviska Enskilda Banken AB|
|3||Svenska Handelsbanken AB|
Nordea is a Swedish financial services group, the largest one in the Nordic and Baltic region. Nordea focused on prodiving corporate and institutional banking as well as retail and private banking products and services. Nordea also offers life insurance and pensions products.
In 2016 total assets of Nordea Bank AB (publ) were 1 731,51 bln SEK.
Nordea Bank AB (publ) is rated by Fitch, Moody's. Long-term credit rating assigned to the bank by Fitch is AA- (very high credit quality). Long-term credit rating assigned to the bank by Moody's is Aa3 (high grade). Nordea Bank AB (publ) participates in deposit guarantee scheme of Sweden. This scheme covers accounts up to 100 000 EUR per bank per depositor.
Skandinaviska Enskilda Banken AB (SEB) offers a broad range of retail and corporate banking products and services as well as insurance products to private individuals and companies.
In 2016 total assets of Skandinaviska Enskilda Banken AB (publ) (SEB) were 1 999,84 bln SEK.
Skandinaviska Enskilda Banken AB (publ) (SEB) is rated by Fitch, Moody's. Long-term credit rating assigned to the bank by Fitch is A+ (high credit quality). Long-term credit rating assigned to the bank by Moody's is Aa3 (high grade). Skandinaviska Enskilda Banken AB (publ) (SEB) participates in deposit guarantee scheme of Sweden. This scheme covers accounts up to 100 000 EUR per bank per depositor.
Svenska Handelsbanken AB (Handelsbanken) is a universal bank, providing retail, private, corporate and investment banking products and services to individuals, companies, corporations and institutions.
In 2016 total assets of Svenska Handelsbanken AB (publ) were 1 894,70 bln SEK.
Svenska Handelsbanken AB (publ) is rated by Fitch, Moody's. Long-term credit rating assigned to the bank by Fitch is AA- (very high credit quality). Long-term credit rating assigned to the bank by Moody's is Aa2 (high grade). Svenska Handelsbanken AB (publ) participates in deposit guarantee scheme of Sweden. This scheme covers accounts up to 100 000 EUR per bank per depositor.
Swedbank AB is a full-service universal bank offering retail and corporate banking products and services to private individuals and companies.
In 2016 total assets of Swedbank AB (publ) were 1 294,17 bln SEK.
Swedbank AB (publ) is rated by Fitch, Moody's. Long-term credit rating assigned to the bank by Fitch is A+ (high credit quality). Long-term credit rating assigned to the bank by Moody's is Aa3 (high grade). Swedbank AB (publ) participates in deposit guarantee scheme of Sweden. This scheme covers accounts up to 100 000 EUR per bank per depositor.
15 savings accounts offers from 3 banks operating in Sweden are currently available. The savings accounts terms vary from 1 month to 1 years (12 months). The interest rates are within the range 0.30 - 0.60 %.
Hoist Finance (also known as Hoist Kredit) is a Swedish financial company, specializing in providing debt restructuring services to international banks. Hoist Finance offers a broad spectrum of flexible and tailored solutions for acquisition and management of non-performing unsecured consumer loans.
8 time deposit accounts offers from 3 banks operating in Sweden are currently available. The time deposit accounts terms vary from 12 month to 4 years (48 months).The interest rates are within the range 0.70 - 0.90 %.
Founded in 2005, Klarna provides financial services for online shopping market. Klarna adheres to the concept of after delivery payment, when buyers receive ordered goods before any payment is due. At the same time, Klarna assumes the credit and fraud risk so that retailers be sure that they will receive their money.