...MADRID (S&P Global Ratings) Feb. 28, 2019--Swedish lender Swedbank AB (##-/Stable/A-1+) has recently been implicated in the ongoing money-laundering scandal in Estonia and has subsequently seen its share price fall more than 20% within a week. On Feb. 20, the Swedish broadcaster SVT presented information linking Swedbank to Danske Bank's alleged money-laundering case in Estonia. Swedbank is the leading bank in the Baltics, holding private lending and deposit market shares above 30% in the region and around 45%-50% in Estonia, in particular. We understand that Swedbank has focused predominantly on domestic customers in the Baltics while it holds an important 25% market share in cross-border business in Estonia. However, the bank has now found itself embroiled in the Danske Bank money-laundering case. In response to the accusations, the bank's management assured that the bank has diligently followed the "know your customer" rules in its Estonian operations, off-boarded questionable clients,...
