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New bank merger targets the Øresund market
While still suffering from the aftermath of the financial crisis three banks from Swedish region Skåne join forces to take an aggressive stance. Apart from considerations of a name the new bank also considers to open offices in Copenhagen to become a strong player in the entire Øresund Region.
When the merger of the three Swedish banks Sparbanken Finn, Sparbanken Gripen and Sparbanken Syd takes place it is not merely an establishment of a new bank. The fusion is also the end of three businesses with a long tradition; all three banks are founded in 19th century.
"This merger will make us more competitive in the new market, which has many players and is marked by great competition. We have been present in Skåne for ages and now we intend to become a significant player in the Øresund Region and in order to do so we need to grow" says Lars-Erik Skjutare, CEO Sparbanken Finn, who will also become the CEO of the new bank.
Two reasons for the fusion
The strengthened position is the primary incitement for the fusion but a number of other reasons have contributed to the decision. Both national and international bank regulations keep intensifying and the financial markets are exposed to constantly dropping interest rates as well as rising expenses. Because of that we have already seen several European banks join forces in order to survive.
"Conditions have changed completely so that the present situation dictates a necessity to consolidate and invest. Regulations for a small bank are the same as for a large one and instead of having increasing expenses for three banks they are now just put on one and that way we become more cost-efficient. So clearly there are also economic advantages in the merger" Says Lars-Erik Skjutare.
Øresund collaboration is the key
The new bank will not be a reality until late 2010 due to strict Swedish regulations for bank mergers. And the Copenhagen establishment will take place some time during 2011.
"So far we have no specific products to offer those who are present on both sides of Øresund but we will launch an attractive product portfolio, which will address commuters amongst others" adds Lars-Erik Skjutare.
However, ambition goes further: The new Øresund bank will also be the center of an organised meeting site in the region and thereby create a more structured platform for collaboration within the Øresund Region. Planning is well underway but so far ideas are not official.
Source: Øresundsbron
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