Stability fund

In 2008, the Riksdag decided to establish a stability fund to finance the measures taken by the government to support the financial system. Banks and other credit institutions paid fees to the fund until 2016, when the stability fee was replaced by the resolution fee. The stability fee remains in place for financing measures within the framework of the Precautionary Support Act.

Up until 1 February 2016, guarantees and other forms of state-provided support to credit institutions were financed with funds from the stability fund. When the fund was established in 2008, the government provided SEK 15 billion through a special appropriation. The stability fund, which consists of an account at the Debt Office, has a lending framework established by the Riksdag to be used if resources in the fund are insufficient.

Transfer to new resolution reserve

Some changes were made to the design and function of the stability fund when the new Precautionary Support Act entered into force on 1 February 2016 and as a result of the new EU rules on crisis management being introduced in Sweden. Some of the balance of the stability fund was then transferred to the new resolution reserve.

The size of the stability fund is reported in the Debt Office’s annual accounts.

Institutions pay an annual fee

The annual stability fee is 0.036 per cent of a base that consists of the bulk of the institution’s debts. In addition to the annual stability fee, fees from individual support actions have also been placed in the fund. The fees paid by the institutions that had loans under the state guarantee programme are examples of such fees. The stability fee was taken out for the last time in 2016.

Previous state holding of shares in Nordea

The stability fund also included the shares in Nordea acquired during the financial crisis in 2009 using the fund's resources. They were acquired when the government participated in the bank's new share issue via the capital injection programme. Following a decision by the government, all these shares were sold in 2013. The sale produced a surplus of SEK 19 billion for the fund, corresponding to an annual return of 44 per cent.