In April 2008 an official report, SOU (2008:32), was presented. In that report it was suggestedthat the statutory audit for approximately 96 % of the Swedish companies was to be abolished.The report suggests that the new regulations should apply to all limited companies thatare below two of three limits that have been suggested: a) a balance-sheet total of 41,5 millionSEK; b) a net turnover of 83 million SEK or; c) less than 50 employees. The regulations aresuggested to come into force July 1, 2010. According to the Swedish laws that regulate thelimited companies, Aktiebolagslagen 10:11, should all limited companies regardless of sizehave an chartered accountant or otherwise approved. The purpose of the audit is to create atrust towards the figures that the company shows and also to act as an assurance towards thirdparties (Collis, 2003; Strenger et al, 2008).

Purpose: To investigate whether or not the credit granters believe the quality in audits will deteriorate after the abolishment of statutory audit and, if that is the case, how the abolishment will strike the purpose and goal of accounting.Approach: To answer our purpose we carried out a literature study to later implement interviews with four granters of credits specialised in business accounts.Findings: The process of Credit granting will not change after the abolishment of statutory audit for companies still using audit reports. Though, for other companies the process will change dramatically since the lean time of the process will increase. Higher demands will be put on these companies since the reliability in the economic information will decrease when it is no longer being reviewed in the same sense. Though, the credit granters believe that some form of substitute for audit will be demanded in order for the companies to be granted credits from the bank..

Background: The hurricane in the south of Sweden in January 2005 was the worst storm in Sweden for the last hundred years. The storm named Gudrun has blown down forest that according to estimation is corresponding to one year of cutting down in the entire country.Purpose: The purpose of this thesis is to describe how credit granters act when facing falling forest real estate mortgage and describe if they will make considerations due to the storm in the south of Sweden 2005.Method: With help of a qualitative method, we investigated how the credit granters act when facing falling forest real estate mortgage. Interviews were obtained with three credit granters, SEB, Landshypotek and FöreningsSparbanken in the county of Jönköping and Kronoberg.Conclusion: The conclusion is based upon the empirical study, the analysis and our own reflections and it shows that the credit granters do not change their policy concerning Credit granting to forest real estate properties. The policy of the credit granters has proven to be valid even in this extreme situation..

The new accounting standards IFRS and IAS was implemented in January 2005, the purpose was to harmonize accounting standards world wide. As a result of these new rules the real estate companies are allowed to appraise real estates assets at market value. It has long been debated whether this appraisal fulfils the requirements for relevance, reliability and comparability.The paper attends to how banks control the information given by the real estate companies in the process of Credit granting. As an introduction we describe the purpose of accounting and the problematic´s about appraisals with market values. Further on there is a discussion on which factors are taken into consideration when banks grant credits.The study is built on interviews at three different commercial banks.

It is mandatory for the countries in the European Union with company audit, still the countries can separately choose to exclude smaller companies from this rule. Most companies in the EU use this exception, Sweden is one of the few countries that does not. The Swedish government has recently announced that an inquiry will be made to examine the effect of an abolishment of the statutory audit for smaller companies.This study examines in what extent car selling companies use revised material when they give costumers credit and the consequences of an abolishment of the statutory audit for these companies. The conclusion of the study is that car selling companies feel secure knowing that their costumers have been audited. Most companies interviewed, buy credit information from external sources.The persons interviewed have a hard time knowing the outcome of the abolishment of the statutory auditing.

Final assignment for Bachelor Degree in Business Administration,Mid Sweden University in ÖstersundSpring term 2008Title: Abolishment of statutory audit ? a qualitative research on banks attitude when credit rating small businessesAuthor: Rima Harouki, Carina HoffmannSupervisor: Anna-Maria JanssonBackground & problem: In Sweden the statutory audit has been mandatory for every corporation since 1983. With the membership in European Union it became possible to allow exception from statutory audit for small businesses, according to the fourth commission of EG. Today, in the European Union, there are few countries that still have statutory audit for smaller businesses, Sweden is one of them. There are discussions about whether Sweden should follow the trend of abolishment and an analysis management by the justice of the Supreme Court Bo Svensson was recently presented, which ended in the conclusion that statutory audit ought to be abolished.

The law of preferential rights has, since the 70?s, given företagshypotek a high priority after a company has claimed bankruptcy. After the costs concerning the insolvent estate and the liens, företagshypotek has received full refund. The effect has been that the unprioritized creditors often have not recieved any of their claims after the bank have re-cieved theirs. Many countries have during the last decades deviated from this law and in 2003, Sweden decided to take the same path.

Through certain exceptions in the Swedish regulation on credit agreements for consumers, a new form of instrument for credits has arisen on the national market. The instrument, which is most commonly known as easy credits and was first seen on the Swedish market for consumer credits in 2006, has developed to become part of a vast problem with excessive debt incursion. In order to counteract this development and to harmonise the internal market within the EU, directive 2008/48 EC on credit agreements for consumers was introduced in 2008. In Sweden, the implementation of the directive has led to a proposition for a new regulation on credit agreements for consumers (SFS 2009/10:242 Ny konsumentkreditlag) coming into effect on the 1 January 2011. The proposition puts up stricter rules on creditors granting consumer credits in their course of business, and revokes the former exemption on information and practices preliminary to the conclusion of the credit agreement for minor credits.

Nedgångar i världsekonomin med påföljande likviditetsproblem hos företag har medfört negativa konsekvenser för banker, vilket skapade behov av effektiv kreditriskhantering. För att förhindra stora kreditförluster försöker banker ständigt minimera sina risker vid kreditgivning genom att identifiera fallgropar.Syftet är att undersöka vilka faktorer som bidrar till kreditförluster och belysa hur Nordea kan minimera risker vid kreditgivning utifrån dessa faktorer.Datainsamling skedde via granskning av litteratur och en fallstudie. Studieobjektet var affärsbanken Nordea där det genomfördes flera intervjuer med kreditansvariga på en regional nivå. För att ta reda på utvecklingen av kreditvolym inom Sverige sammanställdes data utifrån kreditgivningsstatistik från Nordea Hypotek AB.Enligt teorin är kreditförluster beroende av direkta och indirekta faktorer. Medan de direkta faktorerna kan påverkas av en kreditanalytiker ligger de indirekta faktorer utanför dennes inflytande.

Purpose: The purpose of this thesis is to examine whether some periods of declines in Swedish real credit can be explained by a credit crunch. Is it further possible, with these results, to do any conclusions about the banks behaviour in the on going financial crisis that has shadowed the country since 2007/2008? Method: A credit crunch is here defined as a period of supply-side restrictions on loans which doesn?t reflect the ongoing interest rates. By estimating a supply and demand function with a disequilibrium model the excess demand- and supply for credit due to different periods can be calculated. Conclusion: A credit crunch has been present during a period after the banking crisis of early 1990?s.

Internationally most Internet trade related payments are performed with the use of a credit card based payment system on the Internet. Payment against invoice is still most common when trading over the Internet in Sweden. The security development, comfort and timesaving indicate that credit card based payment systems on the Internet soon will have a breakthrough in Sweden as well. The Swedish legislation concerning payment is neither especially extensive nor suited to electronic payments but to payments performed with notes and coins. When the legal effects, of a payment performed with a credit card based payment system on the Internet, set in is not fixed.

Today all private corporations are obligated by statutory audit. The government of Sweden appointed an investigation to conclude if the audit should be statutory or not. The investigator presented on the third of April 2008 a report (SOU 2008:32) that suggests abolishment of the statutory audit for approximately 97 % of all private corporations in Sweden. This will result in certain effects on the banks credit rating because of the fact that the banks trust the audited accounts to have been audited by an independent audit.The most important in the banks credit rating are: personal judgement, business concept, business plan and repayment ability. The banks also use the private corporations audited accounts in its credit rating.We conducted a case study by interviewing four bank officials in different banks in Skövde and Tibro.

This study examines the background and nature of the credit default index swaption (CDIS) and presentsrelevant methods for modelling credit risk. A CDIS is a credit derivative contract that gives the buyerright to enter into a credit default index swap (CDS index) contract at a given point in time. ACDS index, in turn, is a multi-name credit default swap (CDS). Within the eld of research, thisthesis identi es the CDIS pricing models presented by Jackson (2005), Rutkowski & Armstrong (2009)and Morini & Brigo (2011) as the most recognized and developed. These models are evaluated byreconstruction in a numerical software environment.

The credit rating industry is a complex and fascinating industry. Its history stretches back more than 150 years and has gradually increased in importance. During its history the dynamics of the industry have changed. The extended-principal-agent model was developed by synthesizing different principal-agent-relationships into one model. This model provides a holistic understanding of the credit rating industry and illustrates the interdependence between the different relationships.

Purpose: The purpose of this thesis is to test for the existence of Capital Structure Arbitrage oppertunities in the equity-credit markets. Methodology: The mispricing of Credit Default Swap contracts are calculated and used as input in an Equity-Credit market trading strategy. The returns are then evaluated with a modified Value-at-Risk simulation. Theoretical perspectives: A Merton-based structural model, CreditGrades, is used for credit pricing and a mispricing-convergence trading-strategy between the credit and equity markets is implemented. Empirical foundation: Daily quotes for the Credit Default Swap spread of 37 European firms were collected for a period of two years, as well as equity-prices for the same period and the previous two years, used for model calibration.