Changes seldom mean that all previous truths suddenly cease to be valid, and moreover changes do not happen overnight. Especially in the banking market, important changes are more likely to occur slowly and gradually over a long period. Nonetheless, these trends, even if the impact only proves to be half as big as the financial markets’ trend oracle predicts, entail interesting challenges and opportunities for Swedish banks. Together, disintermediation and commoditization should result in a more distinct division of production, distribution and risk-taking. As I am sure you know, this is what consultants call the breaking up of the value chain. Even though some banks undoubtedly will try to keep as much of the value chain as  3/4  possible, it is going to become more difficult. Each part of the value chain will be exposed to competition from specialised niche players. Allow me to give a few concrete examples. For several years now it has been noted that Swedish banks’ share of savings is slowly but surely decreasing. Not because Swedish banks have performed worse than any other pension or fund manager, but simply because there are a lot of players that are at least as good, and sometimes also cheaper. The four major banks have a strong grip on the Swedish mortgage market for households. But they seem to have defended their large market shares in some measure through price cuts. Also as regards the corporate market, the four major banks appear to have a continued strong position.
Working with SNB over the last ten months to set up this branch has been a real delight for MAS. You are clear in your objectives, methodical in your approach, and always gracious and understanding in your dealings. Thomas, you will always have the full support of my colleagues and I at the MAS, as SNB grows its presence here. Once again, please accept my congratulations on the opening of your branch. Have an enjoyable evening ahead! 2  BIS central bankers’ speeches