New permit opens new corporate lending possibilities for Landshypotek Bank
Landshypotek Bank has received permission from Finansinspektionen (the Swedish Financial Supervisory Authority) to use a base method for internal calculations of risk and capital requirements for larger corporate agricultural and forestry customers, thereby strengthening the bank’s long-term competitiveness and growth possibilities.
“This is a highly welcome response from Finansinspektionen. The permission critically impacts our long-term capacity to be competitive and to grow together with our larger corporate customers in our niche — lending to agriculture and forestry. This answer opens possibilities for at the same time as it secures our continued development,” says Catharina Åbjörnsson Lindgren, Acting CEO of Landshypotek Bank.
Slightly more than one year ago, Landshypotek Bank applied for a new permission to use a base method for internal calculations of risk and capital requirements for corporate exposures (IRB-c). The underlying reason being the changes in the market and the changes among agricultural and forestry customers. Due to structural changes, some agricultural and forestry customers are operating increasingly large companies, which also impacts the banks’ risk and capital assessments.
“As the market leader, the decision will positively affect the entire farming and forestry sector. Given the relevance for our niche and core skills, the permission is an important signal. If anyone in the banking market is going to have the internal competence to assess lending to farmers and foresters — that would be us,” says Catharina Åbjörnsson Lindgren.
The permission means that the capital requirements applied by Finansinspektionen will approach the internal capital requirements calculated by the bank for its lending.
For more information, please contact:
Catharina Åbjörnsson Lindgren, Acting CEO of Landshypotek Bank, can be contacted through Tomas Uddin, +46 (0)70 299 24 08
Martin Kihlberg, Acting General Counsel, Head of Public Affairs and CSR at Landshypotek Bank, +46 (0)8 459 04 86 martin.kihlberg@landshypotek.se
Tomas Uddin, Chief Communications Officer, +46 (0)70 299 24 08 tomas.uddin@landshypotek.se
Om Landshypotek Bank
Landshypotek Bank is one of the ten largest banks in Sweden and has the primary mission of financing Sweden’s farmers and foresters. The bank also offers savings products to the general public and mortgage loans to homeowners. The bank’s customers contribute to strengthening the agroforestry sector and enable all of us to benefit from locally produced food and Swedish forest products. Landshypotek Bank has 170 employees working from 19 offices across Sweden.