Intense pressure forced Swedbank to cancels mortgage rate hike
Wednesday, 20 November 2013
Swedish bank, Swedebank had increased its interest rates on mortgages
by 0.25 percentage points last week but came under intense pressure and
has been forced to back down.
Swedish banks have been criticised for operating in an environment
where there look to be competition but in fact they either work in a
cartel or as a monopolies while other sectors of the Swedish business
community struggle with a tight business environment.
After the Financial Supervisory Authority (FI) announced that the
so-called risk weights on mortgages should be raised, Swedbank lurch
ahead and became the only bank that raised its mortgage rates.
But they are now deciding to pull back the decision and announced instead a reduction in mortgage rates from tomorrow.
“We are lowering partly what we previously raised, then between 0.25
and 0.35 per cent beyond that.” says Peter Borsos to Swedish Television.
The reason for the cut is that the other banks have not made the same
assessment as Swedbank did last week. They have not followed Swedbank
in increasing rates.
“Competition is fierce and we cannot lie with a higher price than any
other, so it needs to be adjusted. We stand still for what we said
before, and that change will be gradual, but we are part of a market
and listening to our customers.”
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