Funding crisis management

The management of banks and other institutions in crisis shall be funded by the institutions themselves – first by their own shareholders and creditors and, if required, through special funding arrangements built up from fees paid by the institutions to the Debt Office.

When a bank or other institution encounters a crisis, the costs for crisis management are to be first and foremost paid by the institution’s own resources. This means that shareholders and creditors must incur the losses and, if necessary, contribute to restoring the institution’s capital.

In certain situations, supplementary external funding may be needed. In this case as well, it is the institutions themselves that bear the cost. This is achieved through the fees that the institutions pay to the Debt Office. The fees are collected in special funding arrangements administered by the central government. In Sweden, there are three of these: