Banks in Sweden continue to report large profits while households struggle with high-interest rates and high inflation, drawing criticism from Swedish Prime Minister Ulf Kristersson and Finance Minister Elisabeth Svantesson.

Sweden’s major banks increased profits at a faster rate than their Nordic counterparts, with Handelsbanken, SEB, and Swedbank having reported a profit increase totalling SEK 10 billion (€970 million) in the first quarter of the year, mainly due to increased interest rates.

Regarding the situation on the fringe of the EU summit in Brussels, Prime Minister Ulf Kristersson said: “Bank customers should always be careful and questioning,” the news agency Direkt reported.

“But then we should be happy about well-managed and well-capitalised banks. It is a constant balancing act. Customers should negotiate their interest rates and ensure they also have interest on their deposited capital,” he added.

Finance Minister Elisabeth Svantesson also commented on the situation and declared that the banks’ unprecedented success could be perceived as offensive, confirming Tuesday that talks between the government and all major banks had recently been held.

“My message has been that in difficult times with high inflation, it is important that different actors take responsibility,” she said.

“I have pointed out to the banks that it raises several questions about the competitive situation when they can be so quick to raise interest rates on their lending but do not need to adjust savings accounts as quickly,” she added.

Political initiatives may be relevant in the future to increase competition in the Swedish banking market, Svantesson also said.

(Charles Szumski | EURACTIV.com)

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