Finansinspektionen revokes previous injunction against Landshypotek Bank’s valuation method
Finansinspektionen (Sweden's financial supervisory authority) has decided to take no further action on the case pertaining to one of Landshypotek Bank’s valuation methods. Landshypotek Bank had appealed the injunction decision to the Administrative Court. The case has now been closed at the authority. The appeal has also been withdrawn.
In June 2017, Finansinspektionen decided to issue an injunction to Landshypotek Bank to correct the use of one of the bank’s methods for establishing the market values of real property not intended for housing. Landshypotek Bank appealed the decision to the Administrative Court who suspended the decision. Throughout the proceedings, the bank has maintained that the actual method meets the requirements for individual valuations.
In addition to the legal process, the bank and the authority continued discussions over the winter. Landshypotek Bank continuously improves its valuation process and, at the same time, gathers more information from more information sources as part of the valuation process.
Finansinspektionen’s assessment is that the valuation process adjustments being introduced by the bank will, together, comprise such new circumstances that they will change the prerequisites on which the authority’s injunction was based. Therefore, the injunction has been revoked and the case closed.
“It feels extremely positive that we have agreed on a way forward. We have had a constructive dialogue with the authority, which is now closing the case without any further legal action,” says Martin Kihlberg, Acting General Counsel, Head of Public Affairs, at Landshypotek Bank.
“Following this dialogue, we now have clear, long-term prerequisites in place for developing the bank. Our work methods have been reinforced and, in parallel, we have been challenged to continue improving the valuation process. The outcome provides us with a solid foundation for continuing to strengthen our competitiveness in the market and makes us a better and safer bank for Swedish farmers and foresters,” says Catharina Åbjörnsson Lindgren, Acting CEO at Landshypotek Bank.
For more information, please contact:
Tomas Uddin, Chief Communications Officer, +46 (0)70 299 24 08 tomas.uddin@landshypotek.se
Martin Kihlberg, Acting General Counsel, Head of Public Affairs, at Landshypotek Bank, +46 (0)8 459 04 86 martin.kihlberg@landshypotek.se
About Landshypotek Bank
Landshypotek Bank is one of the ten largest banks in Sweden and has the primary task of providing finance to farmers and foresters. The bank also offers savings accounts to the general public in Sweden and mortgages to homeowners. The bank’s customers help strengthen agriculture and forestry and thus mean that we can all benefit from locally produced food and Swedish forest products. Landshypotek Bank has around 180 employees and has offices in 19 locations across Sweden.
