Sweden's Ministry of Finance has circulated for consultation a memorandum proposing to raise the initial capital requirement for limited liability companies that conduct financing business, known as credit market companies, to the same level as for bank limited companies. The proposal would also update the capital thresholds to reflect inflation since the current levels were set in 2004, taking the requirement for both bank limited companies and credit market companies to EUR 7.5 million. Current initial capital requirements are EUR 5 million for bank limited companies and EUR 1 million for credit market companies. The memorandum would also raise the requirement for savings banks, member banks and credit market associations from EUR 1 million to EUR 1.5 million. The ministry linked the proposal to rapid growth in consumer credit and noted that, since 1 July 2025, only credit institutions, meaning banks and credit market firms, may carry on business whose purpose is to grant or broker consumer credit. The proposed legislative changes would enter into force on 1 January 2027.
Ministry of Finance (Sweden)2026-05-19
Sweden's Ministry of Finance launches consultation on aligning credit market company initial capital with banks at EUR 7.5 million
Sweden’s Ministry of Finance proposes raising initial capital requirements for credit market companies to match bank limited companies and updating thresholds for inflation, setting both at EUR 7.5 million. The memorandum would also increase initial capital for savings banks, member banks and credit market associations from EUR 1 million to EUR 1.5 million, citing rapid growth in consumer credit and the restriction of such activities to credit institutions. The changes would enter into force on 1 January 2027.