The resolution reserve

The resolution reserve is used for funding certain measures during resolution and to contribute to the orderly management of an institution in crisis.

Läs på svenska

The resolution reserve can be used to facilitate the implementation of resolution. The reserve can, for example, provide temporary liquidity support for institutions that are placed in resolution. It is also possible, in certain circumstances, to use the reserve to cover part of an institution’s losses and any need for recapitalisation. However, this may only be done after shareholders and creditors have first borne a considerable part of the loss- and recapitalisation burden.

The institutions pay a fee up to the reserve’s target level

The institutions pay an annual fee to the resolution reserve as long as the reserve’s balance at the end of the year is less than 3 per cent of the covered deposits in the previous year (target level).
The distribution of the fees among the institutions is regulated by a delegated EU regulation. Larger institutions pay a risk-adjusted fee proportionate to their size and risk. Smaller institutions pay a flat-rate fee determined by their size according to a standardised model.

If the reserve balance is not sufficient to fund the actions decided by the Debt Office during resolution, additional funds may be borrowed on behalf of the reserve. In that case, the deficit in the reserve and the loan costs shall be covered by additional fees charged to the institutions retroactively.

Want to read more about how the resolution fee works? In the Focus Report “The resolution fee – part of the financing arrangements for financial stability”, we describe among other things the purpose of the resolution fee, which institutions must pay it, how it is calculated, as well as how the fee is connected to the resolution reserve. 

The resolution reserve in figures:

  • In 2026, 135 institutions paid a resolution fee, and a total of SEK 4.42 billion was paid in.
  • 61 institutions paid a risk-adjusted fee, accounting for almost the entirety of the fees withdrawn. The rest of the institutions paid a standard fee. 
The resolution reserve’s development and forecast

Date

Resolution reserve (billion kr)

As portion of covered deposits (%)

2017-12-31

28.85

1.71

2018-12-31

37.76

1.68

2019-12-31

43.50

2.71

2020-12-31

46.95

2.75

2021-12-31

50.61

2.69

2022-12-31

54.92

2.66

2023-12-31

61.03

2.72

2024-12-31

67.73

2.89

2025-12-31

73.61

2.98

2026-12-31*

79.80

3.06

2027-12-31*

81.79

2.98

2028-12-31*

88.63

3.07

2029-12-31*

90.98

3.00

Note: Outcome refers to 31 December of each year. Years denoted by * refer to forecast in which covered deposits and the institutions’ fee basis are assumed to have a future annual growth corresponding to an average of the growth rate in the three most recent outcome years. The three most recent outcome years for the period are 2023–2025. The assumptions of future interest rates were made using yield curves on 30 April 2026.

Source: The Debt Office.

In what years are the resolution fees taken out?

A resolution fee is taken out as long as the balance of the resolution reserve is below the target level of 3 per cent of covered deposits. The size of the annual fees charged, and which years a fee will be charged, depend on the progression of covered deposits and the fee basis of the institutions liable to pay fees, as well as on the interest payable on the balance of the reserve (based on the Riksbank’s policy rate).

How the forecast is calculated

The forecast of the resolution reserve’s future development is based on:

  • the institutions’ total volume of covered deposits
  • the institutions’ fee basis
  • implicit forward rates. 

These three components affect the forecast in different ways and are associated with different degrees of uncertainty. The actual outcome is affected by a number of factors that cannot be entirely foreseen. The forecast should therefore be interpreted as a calculation based on assumptions made at a certain point in time and not as an exact assessment of the future development.

For the entire forecast period, the institutions’ total volume of covered deposits and the institutions’ fee basis have a future annual growth corresponding to an average of the growth rate in the three most recent outcome years. The interest rate assumption is based on implied forward rates on specific dates, whereas the actual interest earned on the resolution reserve's balance is based on the Riksbank's policy rate and compounded quarterly. See the actual interest level here: Ränte- och avistakonton – Riksgalden.se