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

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.

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

Risk categories and risk indicators
 Vikt
Capital 24%
Leverage ratio 12%
Core tier quota 12%
Liquidity and funding 24%
The liquidity coverage ratio (LCR) 24%
Asset quality 18%
Percentage of distressed loans 18%
Business model and governance 17%
Risk-weighted assets (RWA) / total assets 8,5%
Return on assets (ROA) 8,5%
Potential losses for the deposit guarantee system (DGS) 17%
Non-recorded assets / guaranteed deposits 17%
Sum 100%

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 2017. 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).