Nordea Bank moves its headquarters to Finland

European ninth largest bank Nordea moves its headquarters from Sweden to neighboring Finland due to tight regulation, thus falling under the supervision of the European Central Bank (ECB). By moving to a country that is part of the European Banking Union, Nordea will be regulated in the way its European competitors are regulated and estimates that will save costs.
Chief Executive Officer of Scandinavia's largest bank, Casper von Koskull, said a month ago that a creditor based in Stockholm may feel better off in a closer connection with Europe, especially if it is in a country that is a member of banking union. In that regard, Nordea has announced that it is considering moving its headquarters to Denmark and Finland if the government further tightens capital requirements.
For its banks, Sweden has imposed some of the most stringent capital rules in Europe. In addition, the left-wing government is considering ways to leverage banks in the future. Swedish Finance Minister Magdalena Andersson said that she would be happy if Nordea stays in the country.
The relocation of the bank, that was earlier belonged to the Swedish state, also reduces the risk of the excessive banking sector. The total balance of Swedish banks is four times higher than the country's economic output. Nordea estimates cost savings after moving to Finland at 1 billion EUR. However, it is not cleared how long they will be achieved. According to some analysts, Nordea may lose its Swedish customers by moving outside the country.
Some trade unions have threatened to withdraw their funds and their business bills from the bank. Moreover, according to some analysts, stringent capital requirements also benefit - Swedish banks can be refinanced cheaper than their competitors.
After moving to Finland, Nordea intends to maintain its capital and dividend policy.
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