Swedish financial regulator investigates Klarna's credit risk controls

Sweden's financial regulator has initiated an investigation into how Klarna Bank AB (publ) manages, monitors and internally reports its credit risks.

Finansinspektionen said Jan. 12 that it is a fundamental part of all banks' operations to have in place processes and methods for managing and controlling credit risks, and that it will assess whether Klarna complies with relevant regulations.

Klarna is one of the world's largest providers of buy-now-pay-later solutions and has a banking license in Sweden.