Big banks’ mortgage profits rising

The total net interest for Sweden’s big four banks amounted to around SEK 30 billion for the second quarter – an increase of over one billion kronor since last year. The profits come mainly from mortgages.

“This is a completely unreasonable figure,” says Håkan Larsson, housing economist at the Swedish Homeowners Association. Håkan Larsson says that the development is due to the low repo rate, which has meant there is a huge difference between the interest banks themselves pay and what they offer mortgage customers.

During the same period mortgages have grown in importance for banks. For Swedbank and Handelsbanken, the mortgage share of the group rocketed from 25% in 2010 to 49% and 42% respectively in 2015.

Håkan Larsson points out that the four big banks have very similar interest rates for mortgage customers, calling it a price-fixing cartel. He believes politicians ought to act and the state SBAB bank ought to lead the way by bringing down interest rates.

Three lost years for welfare

In Dagens Industri today, in response to the government’s presentation of the Reepalu welfare inquiry yesterday, Håkan Tenelius, from the Association of Private Care Providers (Vårdföretagarna), writes, “Many thought that a solid inquiry would be able to present proposals that secured quality as well as freedom of choice and diversity. However instead it brought macabre, theoretical calculation models which no minister with self esteem can present to parliament.”

He writes, in the reference group, “it was clear… that the inquiry has not had any ambition to constructively contribute to the development of quality in welfare” and is doubtful of the quality measurements currently used. “The Reepalu inquiry’s answer is three lost years for welfare.”

He urges the alliance to take the initiative and the majority in the Riksdag must do what it can to bring about a process for authorisation for all welfare providers.