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On May 19, 2026, Sweden's Finance Department (Finansdepartementet) submitted a memorandum proposing equalised capital requirements for credit market companies (kreditmarknadsbolag) and commercial banks (bankaktiebolag) to address household over-indebtedness. The proposal aims to strengthen credit assessment practices and prevent unsustainable lending. Sweden has experienced rapid growth in consumer credit in recent years, with approximately 400,000 people holding debts with the Enforcement Authority (Kronofogdemyndigheten). Since July 1, 2025, only credit institutions—comprising banks and credit market companies—may conduct business involving the provision or intermediation of consumer credit. Currently, capital requirements for these entities differ significantly: commercial banks must maintain 5 million euros in capital, while credit market companies require only 1 million euro. These capital thresholds have remained unchanged since 2004. The memorandum proposes raising capital requirements for both bankaktiebolag and kreditmarknadsbolag to 7.5 million euros, with adjustments reflecting inflation since 2004. Additionally, capital requirements for savings banks (sparbanker), member banks (medlemsbanker), and credit market associations (kreditmarknadsföreningar) would increase from 1 million euro to 1.5 million euros. Financial Markets Minister Niklas Wykman said the increased requirements would support sound credit practices and mitigate over-indebtedness. The proposed legislative amendments are scheduled to take effect on January 1, 2027. REFERENCE: https://www.regeringen.se/pressmeddelanden/2026/05/ytterligare-atgarder-mot-hushallensoverskuldsattning/