Banks Are Unlikely to Fight Swedish Plan to Force Cash Handling

(Bloomberg) -- A top Swedish banker signaled the biggest lenders are unlikely to put up a fight against legislation that will force them to keep offering cash to customers.

Backed by a broad majority in parliament, the government last month unveiled legislation that would compel banks to ensure access to cash. The plan has been roundly criticized by banks as potentially illegal as it made its way through parliament.

But now, SEB AB's chief executive officer said that lenders are probably going to accept the imposition.

“Of course we'll need to look at the final proposal and listen to all concerned parties, and if it feels like there's something we need to discuss such as an unwarranted high cost, then we'll discuss it,” Johan Torgeby said in an interview Monday in Visby, Gotland. “But right now I don't know about any such plans. It's natural that the largest banks are asked to do this. Our bank won't be involved in any legal processes on this.”

The law makes it mandatory for banks that provide checking accounts and have more than 70 billion kronor ($7.6 billion) in deposits from the Swedish public to offer cash withdrawals and handle daily receipts.

The legislation is a response to Sweden becoming one of the most cashless societies in the world, with bank branches not offering money withdrawals and stores not accepting cash. Some people are finding it difficult to cope without access to mobile phones or bank cards. There are also fears around what would happen if the digital payments systems suddenly crashed.

Torgeby is also chairman of the Swedish Bankers' Association.

To contact the reporter on this story: Amanda Billner in Stockholm at abillner@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

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