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Economy and Banking Sector of Sweden

Financial Market Development

Financial Market Development
5.1 (max 7.0), 10th out of 138 countries
Banks' Soundness
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).

Financial Market Development in Sweden.

Chart 1. Financial Market Development in Sweden. Source: WEF.


Soundness of banks is scored 5.8 bringing Sweden into the 19th place.

Soundness of Banks in Sweden.

Chart 2. Soundness of Banks in Sweden. Source: WEF.

Further Information

Deposit Guarantee Scheme

Maximum Protected Amount
950,000 SEK

Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Sweden are summarised in Table 1.

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
other legal entities
Non-Eligible Depositors
financial institutions
county councils
municipalities
government agencies
Covered Accounts
deposits in all types of accounts
  • current accounts
  • savings accounts
  • time deposit accounts
  • client accounts
Non-Covered Accounts
pension accounts
Maximum Protected Amount
950,000 SEK
Temporary High Balance
5,000,000 SEK
Paid In Currency
SEK

Table 1. Deposit guarantee scheme in Sweden.

Further Information

Country Ceiling for Deposits

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)
Aaa (prime)
Foreign Currency
Aaa (prime)

Local currency (Swedish krona/kronor) deposit ceiling for Sweden is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).

Deposit Rates

Average Deposit Rate (Feb 2019, SEK)
0.07 %  (Jan 2019: 0.09 %)
In February 2019, an agreed annualised deposit rate in local currency (Swedish krona/kronor) of new contracts with agreed maturity up to 1 year between credit institutions and households was 0.07%.
Deposit Rates in Sweden.

Chart 3. Deposit Rates in Sweden. Source: ECB.

Further Information

Banking Supervision

Sveriges riksbank

Banking Sector Structure

Number of Banks
167
Consolidated Assets (2017)
1,536.62 bln EUR  (-3.56%)
Recent Changes (2018)
new banks: 5, closed banks: 6

Currently there are 167 credit institutions operating in Sweden.

In 2017 consolidated banking assets in Sweden were 1,536.62 bln EUR. The consolidated banking assets' evolution is shown at Chart 4 below.

Consolidated banking assets in Sweden.

Chart 4. Consolidated banking assets in Sweden.

Recent structural changes (2013 - 2018) of the banking sector of Sweden are summarised in Table 2.

201320142015201620172018
Number of Opened Banks071195
Number of Closed Banks1115136

Table 2. Recent structural changes in the banking sector of Sweden.

The list of the most recently opened banks in Sweden is provided in Table 3.

NameStart Date
Landesbank Hessen-Thüringen Girozentrale Stockholm Filial (new)September 2018
Nordea Bank Abp, filial i Sverige (new)September 2018
Express Bank Sverige Filial (new)September 2018
J.P. Morgan Bank Luxembourg S.A. - Stockholm Bankfilial (new)July 2018
HSBC Private Bank (Luxembourg), Stockholm Filial (new)January 2018
Adyen Nordic Bank Filial (new)December 2017
Societe Generale SA Bankfilial Sverige (new)December 2017
National Westminster Bank Plc, Sverige Filial (new)October 2017
EnterCard Group AB (new)September 2017
Danske Hypotek AB (publ) (new)August 2017
 

Table 3. The most recently opened banks in Sweden.

All the credit institutions operating in Sweden can be classified into several categories. Table 4 summarises the number of banks in each category.

CategoryNumber of Banks
Banks66
Branches of foreign banks39
Central banks1
Member banks2
Savings banks59

Table 4. Number of banks by category in Sweden.

There are 39 branches of foreign banks from 10 different countries in Sweden. Table 5 shows the number of branches grouped by the country of origin.

Country of OriginNumber of Branches
 United Kingdom9
 Germany8
 France4
 Norway4
 Luxembourg4
 Denmark3
 Finland3
 Ireland2
 Estonia1
 Netherlands1

Table 5. Number of branches of foreign banks in Sweden grouped by country of origin.