SWEDEN
Sweden is one of the wealthiest economies in Europe, with a GDP per capita in purchasing power parity around 20% above the EU average. The consensus-approach to labour market relations is the main pillar of the country’s economic model. This is characterised by centralised wage negotiations, high taxes and an advanced welfare system. In this regard, the main challenge for policymakers in the coming years will be to support employment of the low-skilled and migrants.
Manufacturing, which accounts for around 15% of gross value added, is a key sector in Sweden’s export-based economy – exports are equivalent to more than 45% of GDP. The country has a competitive advantage in green technologies. Indeed, Sweden, like other Nordic countries, has long been committed to sustainable development and is now one of the OECD countries with the lowest greenhouse gas emissions per capita. Environmental objectives are increasingly integral to every policy area.
While Sweden is part of the EU, it has not adopted the euro so the country has an independent monetary policy.
Summary
BNP Paribas established its business in Sweden in 2006, with a business centre located in Stockholm. While Sweden is well-served by local banks, many multinational corporations are seeking an international banking partner that can provide pan-European services. BNP Paribas is one of the few non-Nordic banks with direct access to the local clearing house in Sweden, enabling the bank to deliver a cohesive domestic and international cash management and trade finance offering.
BNP Paribas is also one of the only non-Nordic banks to provide direct local clearing system access across Norway, Sweden and Denmark, providing a pan-regional capability. BNP Paribas' trade centre for the Nordics provides a single entry point to its extensive network of branches and local trade finance expertise in more than 60 countries around the world. BNP Paribas is recognized by corporate clients as the top-international bank in the Nordics (ahead of several local & regional banks): First International Cash Management Bank in the Nordics – Kantar Prospera 2021.
Currency
- Sweden uses the Swedish krona (SEK).
2016 | 2017 | 2018 | 2019 | 2020 | |
Exchange rate: SEK per USD | 8.5620 | 8.549 | 8.693 | 9.458 | 9.21 |
Source: IMF, International Financial Statistics, July 2021.
- SWESTR | Sveriges Riksbank
- The Swedish central bank is the Sveriges Risksbank (SRB - www.riksbank.se).
- The SRB is a member of the European System of Central Banks (ESCB).
Bank supervision
- Swedish banks are licensed and supervised by the Swedish Financial Supervisory Authority (Finansinspektionen – www.fi.se).
Bank accounts
- A company is resident in Sweden (i) if it is incorporated in Sweden and registered in the Companies Register as having a Swedish place of business or (ii) for foreign companies if they are having their actual place of management in Sweden.
Within SWEDEN | Outside SWEDEN | |
Local Currency | Permitted without restriction, fully convertible. |
Permitted without restriction, fully convertible. |
Foreign Currency | Permitted without restriction, fully convertible. |
Permitted without restriction, fully convertible. |
Within SWEDEN | Outside SWEDEN | |
Local Currency | Permitted without restriction, fully convertible. |
Permitted without restriction, fully convertible. |
Foreign Currency | Permitted without restriction, fully convertible. |
Not applicable. |
- Item-based fees are applied on payments between resident and non-resident bank accounts.
Factoring
Sweden is serviced from Denmark.
Please consult the Denmark pages.
BNP Paribas Cash Management Capabilities
Cash collections | |
Cheque collections | |
Direct debit collections | |
Domestic incoming transfers | |
Virtual IBAN | |
Virtual accounts | |
International incoming transfers | |
Card acquiring |
Cash withdrawals | |
Cheque payments | |
Direct debit payments | |
Domestic outgoing transfers | |
Commercial cards | |
Virtual cards | |
International outgoing transfers | |
SWIFT gpi | |
Real-time international payments through BNP Paribas’ network | |
Card issuing |
Local e-Banking | |
Global e-Banking - Connexis | |
SWIFT/ host to host |
Payments & collections
Cash use is in terminal decline. According to the Sveriges Risksbank, in 2020, only 9% of all payments in shops were made in cash; many Swedish merchants have stopped accepting cash.
Electronic credit transfers are the most widely used instrument by companies for supplier, payroll and tax payments. Debit card payments are favoured by consumers and represent the most used payment instrument by value. Contactless payments either via card or mobile payment apps such as Swish are widely used. In May 2021, the Riksbank launched a new phase in its e-krona project. The central bank published its “e-krona pilot phase 1” report in April 2021; it is currently on hold in anticipation of the eventual implementation of an E-Euro.
Electronic banking services are available from all banks. The Nordic Payments Council (NPC) has developed XML-based message implementation guidelines for customer credit transfers, payment cancellation requests and payment status reports. So far, this is only used in the customer-to-bank space as the payment infrastructure is still based on old stands, but a common bank modernitsation project has been initiated with the aim of moving to end-to-end XML processes by the end of 2026. The international payment messaging standard ISO 20022 is the main standard in the Swedish instant payment flow. Multinational companies also use the SWIFT for corporate messaging standards. Transaction and balance reporting and transaction initiation services are available on a domestic and cross-border basis.
Online banking is available from most Swedish banks. Online electronic invoice and bill presentment schemes are available from the larger Swedish banks. Over 80% of Swedish residents use online banking for bill payments. Mobile banking services are provided by almost all of the country’s banks.
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- Credit transfers are used by companies to pay salaries and suppliers, and to make tax and treasury payments.
- High-value and urgent domestic credit transfers can be settled in real time via RIX.
- High-value and urgent domestic and cross-border EUR-denominated transfers can be settled in real time via TARGET2, or by the Euro Banking Association’s EURO1 system.
- High-value cross-border credit transfers in domestic and foreign currency can also be processed via SWIFT and settled through correspondent banking and bank branch networks.
- Low-value and non-urgent SEK -denominated credit transfers can be settled via Bankgirot or the Data Clearing System.
- EUR-denominated payments can be processed via STEP1 or SEPA-compliant solutions developed by local banks.
- Low-value and non-urgent credit transfers can also be settled on an intra-bank basis via Nordea’s PlusGirot system.
- SEPA credit transfers can be settled via STEP2 or via correspondent banking networks.
- The European Payment Council’s SCT Inst scheme (a pan-European 24/7 instant payment scheme for SEPA credit transfers) enables the transfer of funds.
- TIPS is a pan-European service for the settlement of instant payments in central bank money. The service enables payment service providers and ACHs with access to TARGET2 to offer fund transfers 24/7, 365 days a year. TIPS is aligned with SCT Insts. It is primarily focused on EUR payments but is technically capable of settling payments denominated in other currencies.
- In April 2020, the Swedish Riksbank reached an agreement with the Eurosystem and the ECB to make the SEK available for settlement in the TIPS system, enabling it to provide financial institutions with access to an instant payment system 24/7 every day of the year. The service was launched with banks the first half of 2023 and now all instant mobile payment in Sweden are being cleared and settled via TIPS non-EUR.
- Direct debits (Bg Autogiro) are used for regular payments, such as utility bills.
- Direct debits are processed via the bankgiro.
- SEPA direct debits are available in Sweden and can be settled on a same-day basis via STEP2.
N/A
- Card payments, particularly debit cards, are increasingly popular, especially for retail transactions.
- In 2019, the volume and value of debit card transactions totalled 3,131 million, with a value of EUR 86.8 billion, an increase of 3.4% and 1.8% respectively. Credit card payments rose 10% and 13.7% respectively to 571.9 million, with a value of EUR 25.8 billion.
- There were 11.4 million debit cards and 7.4 million credit cards in circulation at the end of 2019.
- Visa and MasterCard-branded payment cards are the most widely issued.
- American Express and Diners Club credit cards are also available.
- Card payments are processed by the international card providers. Final settlement takes place via RIX.
- Contactless card technology is available in Sweden. Nearly two-thirds of all in-store payments are contactless payments.
- All cards issued are SEPA-compliant with EMV chips.
- There were 2,508 ATMs in Sweden at the end of 2019.
- There were 251,975 EFTPOS terminals in Sweden at the end of 2019.
- All ATMs and POS terminals are EMV-compliant.
- There are various electronic wallet schemes in Sweden, with an estimated 46,000 cards with an e-money function in circulation in 2019.
- Mobile payment schemes such as Apple Pay, Google Pay and Samsung Pay are available.
- The Swish mobile payment service has eight million users and is the leading mobile payment scheme in Sweden with nearly 300,000 companies offering Swish payments. Swish enables users to make business-to-consumer, consumer-to-consumer, and and repetitive instant bank transfers with the use of mobilephone numbers and alias Swish numbers.
Short term investments
Interest payable on credit balances
- Interest-bearing current accounts are permitted for residents and non-residents.
Demand deposits
- Demand deposits are available for residents and non-residents.
Time deposits
- Time deposits are available in SEK and or major foreign currency for terms up to two years. One-year terms are the most common.
Certificates of deposit
- Domestic banks do not commonly issue certificates of deposit.
- Certificates of deposit are available in SEK, EUR and USD.
- Maturities of three and six months are most common.
Treasury (government) bills
- The National Debt Office (Riksgäldkontoret) issues Treasury bills with maturities of three, six and 12 months. The minimum investment is
SEK 5,000. - A six-month bill is issued every third month. A three-month bill is issued in other months.
- Domestic commercial paper is issued by companies and public authorities. Terms from overnight to 12 months are permitted.
Money market funds
- Domestic money market funds are available.
Repurchase agreements
- Repurchase agreements with maturities ranging from overnight to one week are available.
Banker's acceptances
- Banker's acceptances are not used in Sweden.
BNP Paribas Trade Finance Capabilities
Documentary credits | |
Documentary collections |
Bank guarantees | |
Standby letters of credit |
Receivables | |
Payables | |
Inventory |
Connexis Trade | |
Connexis Supply Chain | |
SWIFTNet Trade for Corporates | |
Connexis Connect | |
Connexis Guarantee | |
SWIFTnet Supply Chain |
- BNP Paribas provides a comprehensive range of trade finance and supply chain management solutions to the key exporting companies in the Nordics, enabling them to mitigate their payment risk, secure commercial contracts and enhance their working capital needs. Through the bank's trade centre for the Nordics, BNP Paribas provides a single entry point for its customers to manage all their trade finance needs including advice on local guarantee wording.
International trade
- As a member of the European Union (EU), Sweden follows the EU customs code and applies all associated regulations and commercial policies.
- Trade with countries in the European Economic Area (EEA) and Switzerland is exempt from tariffs and other controls.
- The EU has trade agreements in place with over 30 countries.
- The EU is currently in free trade negotiations with a number of countries, including the Association of Southeast Asian Nations (ASEAN), Australia, Indonesia, Mercosur (the Southern Common Market), Uruguay, and the USA. The EU and the UK are discussing their future trading relationship, following the UK’s departure from the EU.
Imports | Cars and vehicle parts | Crude petroleum | Refined petroleum | Broadcasting equipment | Computers | ||
Primary Import sources | Germany (18.0%) | Netherlands (9.0%) | Norway (7.0%) | Denmark (7.0%) | China (6.0 %) | Finland (5.0%) | Belgium (5.0%) |
Exports | Packaged medicines | Motor vehicles | Refined petroleum | Lumber | Broadcasting equipment | ||
Export markets | Germany (10%) | Norway (9.0%) | USA (8.0%) | Finland (6.0%) | UK (5.0%) | Netherlands (5.0%) | China (5.0%) |
2016 | 2017 | 2018 | 2019 | 2020 | ||
Exports | - goods USD m | 151,982 | 165,178 | 180,750 | 176,288 | 170,189 |
- services USD m | 72,751 | 74,540 | 73,453 | 78,242 | 69,889 | |
Imports | - goods USD m | 140,395 | 153,917 | 169,595 | 158,109 | 149,075 |
- services USD m | 61,751 | 70,171 | 71,656 | 74,704 | 68,605 | |
Current account as % GDP | 3.8 | 3.1 | 2.5 | 5.9 | 6.2 |
Sources: IMF, International Financial Statistics, July 2021.