Instructions: -- 1) Topic: Central Banks and Banking Systems of Other Countries:-- I would like this paper done on the Central Bank of Sweden ( Sveriges Riksbank) -- 2) Length should be 5-6 pages...

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 Bankers Association, February 2013)
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
 Co-operative banks
Savings banks Foreign banks Co-operative banks Commercial banks
The four big banks
Diverse business focus and
ownership structure
Savings banks converted
to joint stock cos.
Subsidiaries

Branches
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 permitted to open branches. Towards the end of 2012,
there were a total of 29 foreign banks in Sweden. Danske Bank is the largest foreign bank in the
country and fifth largest bank overall.Mostly, the focus of foreign banks is on corporate banking
and securities market.
Savings banks
Sweden has a large number of independent savings banks. Often they cater to the regional or
local markets, owing to their smaller size. Many savings banks operate in co-operation with
Swedbank. Lately, the number of savings banks has declined because of merger of small
savings banks.
Co-operative banks
A co-operative bank is an economic association whose purpose is to produce bank services for
its members. To be able to use the bank services of a co-operative bank the customer must
become a member by paying a member share. There are two small co-operative banks in
Sweden.
The table below highlights the number of banks in different categories in Sweden in 2000 vis-à-
vis 2010
(Swedish Bankers Association, February 2013)
Type of bank 2000 (Dec) 2010 (Dec)
Swedish commercial banks 22 37
- of which four big banks 4 4
- of which former savings banks 9 14
- of which other Swedish
commercial banks
9 19
Foreign banks 21 29
- of which subsidiaries 2 2
- of which branches 19 27
Savings banks 79 49
Co-operative banks 2 2
TOTAL 124 117
Source: The Swedish Financial Supervisory Authority
The tasks and role of the Riksbank: Swedish central bank
The Riksbank is Sweden's central bank and is a public authority under the Riksdag, the
Swedish parliament. Riksbank has been given an independent status by Riksdag. This implies
that the Executive Board of the Riksbank makes the monetary policy decisions without
instruction from any other parties. The Riksbank's main objectives are as follows:
Maintaining the value of money – price stability
Riksbank’s primary function is to maintain...