The Savings Banks and the Swedish Banking System

The general development of the Swedish banking system and the savings banks is divided into two periods, 1820–1870 and 1870–1910. During the first phase savings banks were established with both philanthropical and economic purposes. Savings banks were crucial in developing local deposit and credit markets. During the second phase (1870–1910) the Swedish economy underwent a financial and industrial revolution. The savings banks continued to play an important role but focused their businesses more on specific segments of the local deposit and credit markets.