Reporting: deposit insurance fees

In order to calculate the fees for the deposit insurance scheme, the Debt Office annually collects data on each institution’s total guaranteed deposits and the values of a number of different risk indicators.

The institutions’ total fees for the deposit insurance scheme for one year shall correspond to 0.10 per cent of the guaranteed deposits at the end of the previous year.

The total fees for 2019 were approximately SEK 1.6 billion.

How the fee is calculated

 

 

Deposit insurance scheme fees for institutions are calculated on the basis of a number of risk indicators and the guaranteed deposits an institution had on 31 December of the most recent preceding year. The institutions’ fees are also affected by the fact that the total fees collected are to correspond to 0.1 per cent of the total guaranteed deposits.

The risk indicators are used to calculate a risk score for each institution. Based on the risk scores, the institutions are divided into different risk classes. An institution’s risk class and size of the guaranteed deposits then determine what fee it is to pay.

In order for the total fees collected to amount to 0.1 per cent of the total guaranteed deposits, an adjustment coefficient is used. For example, if 0.1 per cent of the total guaranteed deposits amount to SEK 1,500 million, and the total fees calculated before the adjustment factor to SEK 1,470 million, each institution’s calculated fee will be adjusted upwards by the adjustment factor 1.02 (1,500/1,470 = 1.02).

These risk categories and risk indicators and their weighting are taken into account in the fee model:

Risk categories and risk indicators
 Vikt
Capital 18%
Leverage ratio 9%
Core tier quota 9%
Liquidity and funding 18%
The liquidity coverage ratio (LCR) 9%*
Net stable funding ratio 9%*
Asset quality 13%
Percentage of distressed loans 13%
Business model and governance 13%
Risk-weighted assets (RWA) / total assets 6,5%
Return on assets (ROA) 6,5%
Potential losses for the deposit guarantee system (DGS) 38%
Systemically important institutions 23%
Non-recorded assets / guaranteed deposits 17%
Sum 100%

* Within the risk category liquidity and funding, as of the 2022 fee collection, the risk indicators liquidity coverage ratio and net stable funding ratio are to be used. For the 2021 fee collection, only the risk indicator liquidity coverage ratio is to be used.

When converting data to SEK, guaranteed deposits will be recalculated at the rate fixed by Nasdaq Stockholm as at 31 December.

For other data, the exchange rate previously used for the year-end closure shall be used.

To calculate fees for the deposit insurance scheme, we use a mathematical function in which institutions’ guaranteed deposits and the values of a number of different risk indicators are included as at 31 December of the previous year.

Each institution receives a risk score based on the value of the different risk indicators for the institution. This risk score determines where the institution lies within the fee range of 0.07–0.18 per cent of guaranteed deposits. The range consists of six different risk classes. The risk class of an institution is determined by the position of the institution’s aggregate risk score in the percentile ranking of all institutions’ total score distribution.

Current fee model

The current fee model was introduced in January 2021. The EU Deposit Guarantee Directive is the basis and each member state may, on the basis of the directive, devise a method for calculating the fees.

When designing the new fee model, the Swedish National Debt Office has taken into account the guidelines issued by the European Banking Authority (EBA).