Pentti Hakkarainen, deputy governor at the Bank of Finland, said the country needs to tighten capital standards to eliminate discrepancies within the Nordic region’s banking system.

“As the same companies operate in all the Nordic countries, tools should be the same across borders,” he told Bloomberg. “If a bank operating in four countries faces higher capital requirements in three and lower requirements in one, the question is whether it’s a good thing for that one country, or even for the bank.”

Sweden, which already imposes some of the world’s strictest bank standards, plan to hike capital requirements further in an effort to contain record private debt and shield taxpayers from future financial crises, the news bureau said. The Swedish Financial Supervisory Authority will force banks to assign 25 percent risk weights to their mortgage assets, up from 15 percent.