Small companies may find it particularly difficult to change bank, as a long-term relationship between the company and the bank is an important part of the bank's credit assessment. These factors mean that few customers change banks; only 14 per cent of the population have changed one or more banking commitments during the past three-year period. The fact that bank customers do not readily change bank may mean that there is less price pressure on certain products than would otherwise be the case. However, regulations and tax legislation may also have the effect of subduing competition. One area that is worth particular attention is saving in funds. Although competition appears to be good for new savings, there is a considerable deadlock effect resulting from regulations on capital gains tax. This helps dampen competitive pressure. One area that is still an object for old-fashioned, national limitations is cross-border payments. Despite electronic systems and the fact that the EU is supposed to comprise a single market, substantial costs are involved in transferring payments between banks in the different countries. 11  This applies if one compares with other profit-making banks. The non profit-making banks, for instance, co-operative banks, which are common in Germany and France, have even lower profit margins. The margins are calculated as the difference between the interest rate offered to consumers and the interest the bank receives if they invest the money without risk, e.g. in treasury bonds.

The question is whether this tightening of the laws will be sufficient; the incentives for following the competition laws are still fairly weak. It is individuals (company managers, directors, owners) who prepare and make the decisions on limiting competition in contravention of the law, but the current legislation is fairly weak with regard to personal responsibility. In the USA, on the other hand, legislation is more stringent - the responsible decision-makers can be personally sentenced to high fines or to imprisonment. Perhaps we need to have the same principle in Sweden. The government has also said that if the proposed tightening of the competition laws does not prove sufficient, it may consider designating these matters a criminal offence. The existence of what is known as non-tariff trade barriers creates difficulties for import competition, which could otherwise have subdued prices. One example is the building materials market, where special national regulations and voluntary product standards make import competition difficult. Sometimes the endeavour to satisfy information and protection interests can lead to trade barriers that hamper competition. The requirement that chemical products such as washing powder and cleaning fluids (which are more than 90 per cent more expensive in Sweden than the EU average) must be 8  The Swedish Competition Authority, (2001), "Why are construction goods more expensive in Skåne and food cheaper in Western Sweden? ", Swedish Competition Authority's report series, no. 1. 9  The Swedish Competition Authority, (2001), "Can local authorities push down food prices? ", Swedish Competition Authority's report series no. 4.