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Economy

Bonus for Bigger Mortgage in State Bank

Published fredag 15 januari 2010 kl 10.21
Mats Odell, Minister for Financial Markets

The state owned mortgage company SBAB gives bonuses to its employees the higher mortgage and the bigger loan they manage to sell. This is now criticised by the Minister for Financial markets, Mats Odell, who thinks the state owned company should set a good example.

Bigger banks in Sweden, such as Swedbank, Nordea and Handelsbanken do not give bonuses to their employees based on volume, since it may encourage customers to take higher risks than they can afford. A bonus system also flies in the face of the new rules set by the Financial Supervisory Authority regarding bonuses linked to risk taking.

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