Friday , August 19 2022

Debt Office: Bank operations can threaten the banking system as a whole



[ad_1]

After commissioning the Review Review
There was a doubt that money laundering at the bank dropped by over 13 per cent on Wednesday and 9.3 per cent by Thursday. Many customers have shown disappointment for Swedbank and
under threat to leave the bank.

But falling stock prices and banks changing customers do not need to be the only consequences of money laundering suspected, according to Hans Lindblad, director of the National Debt Office.

"This type of behavior damages the confidence of the banks and threatens a threat of financial stability," he said.

The Debt Office is the central financial administration of the state and an internal bank, it's
also responsible for managing emerging banks. The authority's task is to safeguard a fixed social economy and financial market.

– Of course, we see very seriously about money laundering and crime in the financial sector and it is very difficult with these suspicions of criminal behavior, he says.

Hans Lindblad says that the authority is now reviewing the entire procedure regarding the called payment model. It deals with systems for managing state payments, such as transfers between authorities. Today, streams go through procurement banks, but now one is investigating whether it is possible to create a safer system.

– The modern payments model we have now has a turnover of SEK 7,000 billion a year, it must be as safe as possible and citizens must feel securely with the system. Public procurement law considers what conditions and requirements for installation, but belief in taking part in a procurement procedure must be credible, he says.

The great AMF owner insisted during Thursday, an independent review of the Swedbank business. The bank wrote Thursday in a statement to the press
The EY audit company is hired to review the material from the assignment review disclosure.

According to Hans Lindblad, it is vital that all irregularities or crimes are corrected.

– We welcome the fact that Finansinspektionen, together with sister authorities in other countries, are investigating these issues, but it has a very big responsibility for the banks themselves in the future.

Otherwise, it could have big results.

– Bank is an important part of the financial system and these are the real blood flow in the economy, if confidence breaks or disappears, interfere with financial stability, among the largest cost that can happen in economy.

Swedbank is so-called A bank that is systematically important, it means it is too large to be put into bankruptcy, and in the case of an absolute crisis the Debt Office would take over.

The bank would then have a "decision" where the balance sheet was restructured to safeguard ordinary savings and normal functions, while shareholders and investors would be forced to take the bang. However, Hans Lindblad emphasizes that such a situation is very far and an absolute last resort.

– When the boundaries go when a trust is consumed, it is very difficult to say, there is a dependable position and can not be defined, but the 20 is not exchanged It's not a confidence building development, he said.

The finance man and the Bill Browder pollution helper, who have shown around the payments against Danske Bank and Nordea, has
According to his own statement, it was found that there was a connection between Swedbank and the scandal that was shaken by the Danske Bank in recent years.

Many large banks are pulled back In similar scandals in recent years, Hans Lindblad is worried.

– It's worrying about the occasional grid that does make sure there are regular reservations of money laundering and other fraudulent behavior. Not only are Swedish banks, but there is something we see everywhere, it is very serious that we can not cope with it.

According to him, the latest suspicions of money laundering in the Swedbank organization are symptomatic of an even greater problem.

– There is something wrong in the banking sector because this type of error appears through time, I do not think that there is one action but this is something that requires many different types of measures. Someone have to eliminate the motivation structure and incentives for bankers to act like this

Read more: The decline in Swedbank shares slows down – the price rises

[ad_2]
Source link