S bank tax splits parties over mortgage costs

The Social Democrats want a temporary tax on large banks' net-interest income above its historical average, arguing that the charge and tougher competition could push mortgage margins down.

The party says a 0.2 percentage-point drop would save a household with a SEK 3 million mortgage about SEK 6,000 a year. That figure describes its competition package, including a stronger role for state-owned SBAB and clearer rate comparisons, rather than a guaranteed result from the tax.

The Moderates say banks would pass the full charge to borrowers. Their calculation puts the cost at about SEK 7,000 a year on the same mortgage. Finance Minister Elisabeth Svantesson confirmed to SVT that the estimate assumes full pass-through.

S economic-policy spokesperson Mikael Damberg would not promise SVT that mortgage rates could not rise, pointing instead to bank profits and weak competition.

Independent evidence is mixed. Studies of bank taxes in other countries have found effects ranging from substantial pass-through to little change in lending rates. Stockholm University economist John Hassler told SVT that both sides are oversimplifying.

The proposal is not law. S, V and MP support higher bank taxation, while M and C oppose it. S has not published the tax rate, revenue estimate, start date or duration. Those details would determine how much banks owe and what households might ultimately pay.

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