Swedbank’s credit policy shall ensure that credit is provided in a sustainably sound manner based on an awareness of customers, their operations, environment and prospects.
Beyond key issues of confidence in the customer, an understanding of the transaction and the assumption of risk, the policy also stresses the group’s indirect social responsibility for the environment and sustainability in connection with credit assessment. Consequently, sustainability issues, for example, are dealt with on the basis of a risk-focused sustainability analysis intended to minimize the sustainability risks that could negatively affect a customer’s undertaking towards the bank.
The cornerstones upon which the credit policy is based include the following:
- An analysis of the customer’s financial position and repayment capacity
- An understanding of the transaction
- Business acumen
- Balanced assumption of risk
- Sustainable profitability
- Regard for the environment and a high ethical standard
The credit policy creates the conditions necessary for the sustainably sound provision of credit. Swedbank seeks to maintain a low risk profile and a well diversified, high-quality credit portfolio. The credit policy is clarified and made concrete through detailed instructions and guidelines.
This is a summary of the Credit Policy, adopted by Swedbank's Board of Directors, 21 June 2017.