Precautionary support

If there is a threat of a serious disturbance to the financial system, the state can in certain cases give precautionary support to viable banks and other credit institutions. The Debt Office is the responsible authority according to the Precautionary Support Act.

The Precautionary Support Act came into force on 1 February 2016. It replaced the Support Act that was introduced during the financial crisis in 2008, empowering the government to give support to credit institutions in order to safeguard financial stability. The support measures included issuing guarantees or injecting capital. The government designated the Debt Office as the agency responsible for handling the support measures.

More limited possibilities under new act

Under the new act, the possibilities of providing support are more limited. For instance, it is only permitted to support the funding of institutions via guarantees. Capital injections are only permitted in special cases.

Support under the new act will be financed in the same way as before via the stability fund.