Banking regulation—Sweden—Q&A guide

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Banking regulation—Sweden—Q&A guide
  • 1. What are the principal governmental and regulatory policies that govern the banking sector?
  • 2. What are the defining characteristics of a bank to be caught by the banking laws and regulations? Is non-bank fintech regulated differently?
  • 3. Do the rules vary depending on the size or complexity of the banking institution?
  • 4. Summarise the primary statutes and regulations that govern the banking industry.
  • 5. Which regulatory authorities are primarily responsible for overseeing banks?
  • 6. Describe the extent to which deposits are insured by the government. Describe the extent to which the government has taken an ownership interest in the banking sector and intends to maintain, increase or decrease that interest.
  • 7. Which legal and regulatory limitations apply to transactions between a bank and its affiliates? What constitutes an ‘affiliate’ for this purpose? Briefly describe the range of permissible and prohibited activities for financial institutions and whether there have been any changes to how those activities are classified.
  • 8. What are the principal regulatory challenges facing the banking industry?
  • 9. Are banks subject to consumer protection rules?
  • More...

Banking regulation—Sweden—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to banking regulation in Sweden published as part of the Lexology Getting the Deal Through series by Law Business Research (published: February 2021).

Authors: White & Case LLP—Carl Hugo Parment; Martin Järvengren

1. What are the principal governmental and regulatory policies that govern the banking sector?

The main regulatory objectives underpinning the banking sector in Sweden are to ensure financial stability and to protect customers. There are a number of regulations in place aimed at avoiding the risk of bank failures, reducing the impact of failures and to protect customers and investors. Market efficiency, increased competition and prevention of financial crimes are other objectives of Swedish financial markets regulation.

2. What are the defining characteristics of a bank to be caught by the banking laws and regulations? Is non-bank fintech regulated differently?

An institution is characterised as a bank, and caught by the banking laws and regulations, if the institution offers payment services through general payments systems and accepts deposits that are available to the depositor within 30 days of notice of termination. So-called credit market undertakings are allowed to conduct activities similar to that of banks, involving the acceptance of deposits and granting of loans. The key difference between banks and credit market undertakings is that only banks are allowed to offer payment services through general payment systems.

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