STOCKHOLM (Reuters) - Sweden is looking at whether to join the European Union’s banking union, local news agency TT reported on Monday, days after neighbouring Denmark said it would decide in 2019 whether would join.
Financial Markets Minister Per Bolund told TT the reasons to analyse whether joining the union would be a benefit were Britain’s decision to quit EU and top Nordic bank Nordea’s (NDA.ST) transformation into a branch rather than a subsidiary structure.
The central bank has said that change increases the scope of Sweden’s undertakings and Bolund said the merging of subsidiaries in Denmark, Finland and Norway into a branch structure increases the size of Sweden’s banking sector in relation to the economy.
“That means there may be reason to consider sharing the risk with other countries,” Bolund told TT.
He said the government would undertake a thorough analysis of what it would mean for Sweden to become a member.
“If the inquiry would clearly show that there are big advantages for a country like Sweden to join, then it is not ruled out,” Bolund said.
Denmark said last week it would decide on its participation in the banking union after lawmakers concluded in 2015 that it would be in the country’s interests to participate but postponed making a decision.
The banking union covers all countries in the euro zone, but European Union countries outside the currency area such as Sweden and Denmark can also join.
Reporting by Daniel Dickson; Editing by Alison Williams