Nordea Bank AB or most commonly known as Nordea is packing its bag and is looking to transfer its main office to Finland from Sweden. The financial institution is considered to be one of the biggest banks in the region because of its massive market value, and this week, they broke out the news that they’ll be going to Finland after 9 years of being in Sweden.
The bank is currently based in Stockholm, Sweden and has been based there since 2008; and just like the last relocation they did, the whole motive revolves around financial crisis or a financial debacle. The move involves cost cutting and avoiding troublesome regulation.
The biggest motivation why Nordea Bank AB is moving is the whole fact that the Swedish regulations are getting costly and are starting to dent the company’s overall performance. By moving to Finland, the regulations that they will adhere to are from the European Union. The EU’s regulations are fairly acceptable and are less troublesome in comparison to Sweden’s.
Nordea has unveiled that they are looking to Helsinki, Finland for their optimal place to start their banking and financial guidance business under the European banking union. On a recent note provided by the bank’s Chief Executive Casper von Koskull, he said that moving to the European Banking Union “is in the best interest” of the majority of shareholders, customers, and employees. He also added that it is “an important strategic step in positioning Nordea on a par with its European competitors.”
All-in-all, the bank is tallied to be the ninth biggest bank in Europe in terms of market value according to figures and reports last March and simultaneously released that they are going to relocate when a hike in government fees succeeds.
Nordeo on ECB’s Guidance
One more key thing that would benefit Nordeo is that it will be under Europe Central Bank’s guidance. This could mean that the bank will be able to save an estimated 1 billion euro in the longer term because of ECB’s supervision and despite the extra short-term costs. Koskull mentioned that “The Single Supervisory Mechanism is an appropriate regulator for a bank of our size and complexity,”
For the past few decades, Nordeo remained to as the only global systemically important bank around the Nordic region. This prompted for increased in banking fees that drove the bank out of Sweden in the first place, but Nordeo shares will remain to be listed in Stockholm’s stock exchange and even at Helsinki and Copenhagen according to them.
On the other hand, the Swedish Finance Minister Magdalena Andersson expressed her disappointment but also stating that tax revenues would not be affected. She also mentioned that Sweden is gradually taking prospects on joining the European banking union but results and a decision are expected to take at least several years.
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