Scope notes that unless the UK remains in the Single Market Svenska Handelsbanken is likely to be treated like non-EEA banks are currently, which in essence means that its retail operations are too significant to be housed within a branch structure. According to Jennifer Ray, Scope bank analyst and the author of the report, it remains the case that “Scope views SHB’s UK operation as positive for the credit, as it provides a cushion against any domestic downturn.”

The report, titled “Svenska Handelsbanken: Possible UK subsidiarization” can be downloaded here.