Swedbank plans to merge its Baltic banks that at present are subsidiaries into the parent group. A survey commissioned by Swedbank recently showed that it would be the most economic solution, balticbusinessnews.com reports.
“From the viewpoint of capital management, the most cost-effective solution would be to merge Baltic subsidiaries directly into the parent group Swedbank AB,” Hakan Berg, head of Baltic banking in Swedbank says.
Berg said that the company’s board of directors will make a final decision in this issue by the end of the summer.
Hakan Berg himself became the new chairman of the supervisory council of Swedbank AS from May 25. Priit Perens, the bank’s managing director in Estonia, is the chairman of the management board of Swedbank AS.
As part of the restructuring of the group’s management system, Michael Wolf who is CEO of Swedbank Group, left the supervisory council of the Estonian company.
Berg adding that Baltic banking remained a strategic business area for the group and that the objective of the changes was to free the Group CEO from the function of managing and supervision of subsidiaries.
“This will be my job,” he says.
The Norwegians currently holds a controlling stake of 51% of the Baltic bank.
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