Why the Nordics need a stronger capital market

While recent media attention has focused on the idea of a unified Nordic stock exchange, the case for a stronger capital market runs deeper. Petteri Änkilä, Head of Large Corporate & Institutions at Nordea, explains what capital markets integration means for Nordea and its customers: 

“As a Nordic bank, we want to enable Nordic-scale solutions that benefit our customers. A more integrated Nordic capital market would mean that companies at all stages of the growth cycle have access to capital and that private and institutional investors have the ability to invest seamlessly into Nordic companies.”  

“The Nordics consistently produce globally competitive firms. The challenge is ensuring that more of them remain Nordic as they scale, which is why we see a need for a Nordic growth and scale-up fund.”

“Together, the Nordic countries represent one of the most innovative and prosperous economic regions in the world. We have world-class pension systems, globally competitive industries, sophisticated financial institutions and some of Europe's strongest technology ecosystems. But despite deep economic integration in trade and labour mobility, Nordic capital markets remain largely national.”

In practice, this means investment mandates, tax structures, retail savings frameworks and capital market infrastructure are still organised primarily around individual nations. Nordic firms operate in a combined market of nearly 30 million people, yet many still seek financing in larger, more integrated markets elsewhere. Capital is plentiful, but its allocation remains fragmented.

“Europe needs larger pools of growth capital, deeper capital markets and greater cross-border investment if it is to compete with the United States and Asia. Rather than waiting for the EU, the Nordic countries can move ahead and demonstrate what regional integration looks like in practice,” says Petteri Änkilä.