Better In or Better Out: Weighing Sweden’s Options vis-à-vis the Banking Union

Författare: Beck Thorsten

Member States outside of the eurozone may opt to join the EU’s banking union or to continue staying out. In this report, Professor Thorsten Beck examines the pros and cons of a potential Swedish participation. (2019:2)

Sweden and Denmark – both non-euro countries – have commissioned public inquiries concerning a potential participation in the EU’s banking union. One of the contributions to the Swedish inquiry is presented in this report, where the arguments for and against a Swedish participation are examined.

The arguments in favour of joining include the potential for Sweden to benefit from the expertise of the ECB as well as achieving a closer integration into the single market in banking. Arguments against joining include the loss of regulatory and supervisory independence.

While the author does not take a clear stand for or against Swedish participation, he nevertheless offers criteria for the decision process:

  • Additional benefits compared with the Nordic-Baltic cooperation in bank supervision.
  • Whether Denmark joins the banking union.
  • How the supervision of significant Swedish institutions would be dealt with compared to the current structure.
  • How banks in Sweden would react to the structural change in supervision and resolution.

Thorsten Beck is Professor of Banking and Finance at Cass Business School in London. The Government inquiry Committee “Potential Participation in the Banking Union” reports its findings in November 2019.