The head of the banking union is Swedbank’s head

The Bank of Estonia is now under the leadership of Swedbank, with Olavi Lepp assuming the role previously held by Allan Parik of SEB bank. Parik has overseen the banking sector representative organization through the COVID-19 pandemic, subsequent security challenges, and the ongoing energy crisis. “We are currently in a time defined by the words crisis and unexpectedness,” said Lepp.

“Today there are two topics that customers are talking about – energy and inflation. We have had the luxury of talking mainly about the fact that energy must be green. We have forgotten, however, that in addition, it must be enough and it must be reliable.” Lepp emphasized the bank’s priority in ensuring companies and families survive the winter, stating, “Banks are part of the solution – we can finance the necessary solutions and support customers.”

Looking ahead, Lepp outlined the Bank of Estonia’s priorities, including developing responsible and sustainable banking, fostering a competitive economic environment, strengthening cybersecurity, increasing crisis management capacity, promoting financial literacy, and combating fraud.

Parik reflected on the past two years, describing them as a continuous response to unprecedented challenges. “After the unbelievable corona pandemic came the refugee crisis, the energy crisis, and finally the geopolitical crisis,” he noted. “The banks have had to respond to the constantly changing situation and so far, we have done it well.” Parik cited a peak of 23,000 borrowers requiring a pay holiday in mid-2020, subsequently reduced to 7,000 six months later and 2,000 in mid-2021, attributing this to a proactive, cross-sectoral solution and a historically strong loan portfolio.

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