Banks in Sweden

Banks in Sweden are considered the safest place to deposit or preserve one’s money, irrespective of where the customers belong to. From national to international, all customers have the liberty to leverage the banking systems of the nation.  The stability of the banking system is what drives more and more people to trust them.

The Banking and Financing Business Act (SFS 2004:297) is the primary legislation that guides the banks in Sweden. This domestic rulebook specifies details related to the authority, governance, corporate provisions, credit assessment, operations, ownership, and monitoring rights of these entities.

Banks in Sweden operate like any other bank in the world with feasible criteria to meet for depositing money for both national and international customers. There are a total of more than 120 banks operating in Sweden, which include commercial, savings, and cooperative banks besides other financial institutions from foreign nations.

The central bank of Sweden is Sveriges Riksbank, which was established in 1668, is the oldest central bank in the world. This is the most important bank among all because Sveriges Riksbank (alternatively, Bank of Sweden) is the central bank of Sweden. This bank controls and regulates the monetary policy of the banking system so that the price remains stable. This bank was founded long, long ago, around 349 years ago, in the year 1668. And it is considered to be the oldest central bank in the whole world. It is authorized under the Riksdag, the parliament of Sweden.

Recently, Sweden banks have witnessed a significant rise in profit figures in the form of net interest income. Plus, the Swedish banks have more stable credit risk profile given the capital buffers they possess. These banks also tend to have a balanced mortgage portfolio along with considerable portfolio of corporate loans and a better funding structure.

As per Moody’s Investors Service, Sweden’s banking system is quite stable. The reasons behind this rating are the following –

• Sweden has strong operating conditions that allow the banking system to thrive.
• Secondly, its banking system maintains a low-interest rate which will help the profitability and asset quality to increase.
• Thirdly, Sweden’s economic growth is commendable that allows the banking system to evolve in the near future.

Moody’s Investors Service has also mentioned that they expect the banking system’s creditworthiness will improve in the next 12-18 months.

As in economic growth, Sweden will outperform many economies in Europe; Moody’s Investor Service has high hope for Sweden’s banking system.

There are a total of over 120 banks in Sweden. As we all know there are big 4 top banks in Sweden. The best part is these four banks have acquired around 80% of the total assets of the industry’s total assets.

We can divide these 120 banks into four categories – commercial banks, savings banks, co-operative banks, and foreign banks. As one can expect the four top banks in Sweden have got the major stakes and other banks are small to medium-sized banks.

Digital Banking In Sweden

Sweden's digital banking landscape excels in innovation, cashless transactions, and mobile banking, with a strong focus on sustainability and financial inclusivity. It is at the forefront of innovation and technological advancement. Established banks are leading the way with robust online and mobile banking platforms, focusing on user-friendly experiences. Moreover, Sweden is witnessing the emergence of fintech startups and neobanks, offering specialized digital financial services to tech-savvy consumers. The country's progressive regulatory environment and high digital adoption rates contributes to the continued growth and evolution of the digital banking sector in Sweden.

Given the remarkable performances recorded in the banking sector, the top 11 banks in Sweden have been listed below:

1. Svenska Handelsbanken, 
2. Skandinaviska Enskilda Banken (SEB)
3. Swedbank
4. Nordea Bank
5. Danske Bank
6. SBAB Bank
7. Länsförsäkringar
8. Skandiabanken AB
9. Avanza Bank
10. Ikano Bank
11. Revolut

Among these are the three major banks of the nation - Svenska Handelsbanken, Skandinaviska Enskilda Banken (SEB), and Swedbank with SEB having a market capitalization value worth 261.44 billion Swedish Kronor followed by Svenska Handelsbanken with 209 billion Swedish Kronor, and Swedbank with 199 billion Swedish Kronor.

#1. Svenska Handelsbanken AB:

This is the second-largest bank and needless to say that it is also one of the big four top banks in Sweden. It is quite an old bank and it was established in the year 1871, around 146 years ago. Around 11,000 employees work here. It has a presence in over 20 countries. And this bank has 430 branches only in Sweden. At the end of June 2017, the total assets acquired by this bank were SEK 2961 billion. Its head-quarter is also located in Stockholm.

#2. Skandinaviska Enskilda Banken:

This is the third-largest bank in Sweden. And also one of the big four banks in the country. It has been providing services for 4 million customers. And it has a presence in over 20 countries. It is older than Svenska Handelsbanken AB; it was established in the year 1856, around 161 years ago. At the end of June 2017, the total assets acquired by this bank were SEK 2777 billion. Its head-quarter is also located in Stockholm.

#3. Swedbank:

This bank is one of the largest in Sweden. It is also one of the big four banks in the country. It has been serving over 7 million customers and it has around 240 branches in Sweden. Around 14,000 employees work in Swedbank. It has a presence in many countries like South Africa, Luxembourg, Norway, Finland, Denmark, etc. At the end of June 2017, the total assets acquired by this bank were SEK 2426 billion. Its head-quarter is situated in Sundbyberg.

#4. Nordea Bank AB:

This is the top bank in Sweden. It is also the first major bank among the big four banks in Sweden. In 2001, this bank was formed by a merger among four banks – Christiania Bank, Merita Bank, Unibank, and Nordbanken. It has been serving around 11 million customers. Around 32,000 employees work here. And it has 600 branches across Sweden. At the end of June 2017, the total assets acquired by this bank were SEK 6183 billion. It is headquartered in Stockholm.

#5 Danske Bank

Founded in 1871, Dane Danske Landmandsbank has evolved with time with its major focus on improving customer experience. This Denmark-based began with providing opportunities for farmers to borrow money and pace up farming and exports. In fact, Denmark was never into export to that extent earlier. In addition, in the 1960s, families started settling in the suburban regions, which thereby boosted the need for houses in Denmark. This, in turn, led to Danske’s provision of new house loans.

Danske, however, has a restriction in providing services to US people. It does not offer advisory functions or securities execution, brokerage or dealing services.  

#6 SBAB Bank

Founded in 1985, this bank has its focus on mortgage lending and borrowing. It has also been structured to take care of the other financial needs of the customers, including offering credit cards, online banking services, and loan and savings products to customers, real estate companies, or tenant owner’s associations. This bank in Sweden is a good source of employment for the people across Stockholm, Solna, Gottenburg, Karlstad, etc.

By the end of 2021, SBAB Bank reported total assets worth SEK 558 billion.

#7 Länsförsäkringar

Established in 1844, this bank has 23 independent units spread across different countries of Sweden. This bank is the only customer-owned and locally established entity offering banking and insurance group. By mid-2022, the company recorded total assets worth SEK 406 billion. Though they originally began with mortgage lending and borrowing, they received the licence for banking services in 2010 and hence, expanded their banking function, including depositing money, thereafter.

#8. Skandiabanken:

It is also another internet bank which has a significant repute in Sweden. It has been serving over 450,000 customers and it has employed around 300 employees. Skandiabanken is the subsidiary of the Scandia group, Swedish banking, and insurance company with 2.5 million customers. It was established around 23 years ago, in the year 1994. At the end of June 2017, it had total assets of SEK 62,322 million. Its head-quarter is situated in Kungsgatan.

#9 Avanza Bank

Founded in 1999, this is an online bank with 635 employees in 2022 and millions of people as its customers. It is an online stockbroker that records a significant number of transactions on NASDAQ Stockholm. It offers reasonable mortgages in Sweden with an effective rate of interest ranging from 2.44% to 2.64% as recorded towards the end of January 2023. The banks has international stocks and funds to offer to customers for investment at a very low brokerage charges.

#10. Ikano Bank

Ikano Bank is one of the most prominent internet banks operating in Europe. Previously, it was known as IkanoBanken. In the year 2009, the name was changed to Ikano Bank. It provides all sorts of financial services like car loans, mortgage loans, insurance, corporate leasing, etc. It was established in the year 1988 and it is a part of the Ikano group. Around 3800 people work here. At the end of December 2016, it has total assets of SEK 41.5 billion.

#11. Revolut

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