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Swedish Financial System

In: Business and Management

Submitted By ashuchanana
Words 1614
Pages 7
Swedish Financial System
A country’s financial system is an intermediary that channels savings efficiently to fulfill the broader investments and consumption needs of society at large. Swedish financial industry made up a total of 4% of the GDP of the country in the year 2011. It employs around two percent of the total workforce of the country. The following table shows the groups of companies in the Swedish financial market, measured in total assets. Banks clearly grab the largest chunk, amounting to 40% of the total assets of financial market in 2011. Players in the financial market | Percentage share | Banks | 40% | Mortgage credit institutions | 16% | Insurance companies | 20% | Mutual fund companies | 11% | AP Funds | 7% | Other credit market companies | 6% |

Swedish Banking System
Sweden had a total of 117 banks at the end of 2012. There are four main categories of banks in the Swedish market : * Swedish commercial banks * Foreign banks * Savings banks * Foreign banks
Savings banks
Co-operative banks
Commercial banks

Co-operative banks
Subsidiaries

The four big banks

Branches

Savings banks converted to joint stock cos.

Diverse business focus and ownership structure

Swedish commercial banks
There are three categories of commercial banks in Sweden . The first category comprises of the largest four bank, namely, Swedbank, Handelsbanken, Nordea and SEB. They are an important and active part on most segments of the financial market. The second category is of the savings banks which are now converted into joint stock companies. The third category is made up of other Swedish commercial banks which have a diversified business focus and ownership structure.
Foreign banks
Initially, when foreign banks were allowed in Sweden, they could only open subsidiaries. After the financial crisis of 1990s, they were

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