Impose requirement on banks

The Swedish Competition Authority (Konkurrensverket) has rejected the government’s plans to introduce an amortisation requirement, saying that the lack of competition in the banking market would worsen further.

Instead the Competition Authority wants new and tougher lending requirements to be imposed on the banks. Not only would banks be able to offer a range of services designed to suit customers better, but customers would be less likely to stay loyal to one bank for years, instead switching to the bank that provides the best offer.