Handelsbanken's predominant feature is a decentralized approach that gives its branches greater decision-making power and reduces the need for middle management. This generates stronger customer relationships, enabling better loan underwriting and keeping credit costs low. We believe Handelsbanken is one of the best-run banks in Europe. While we recognize it has been late to the digital game relative to peers and its business model does not lend itself to a centralized efficiency splurge, we think concerns that Handelsbanken has seen its best days are exaggerated.