Financial corporations and markets are often international in nature. Accordingly, international cooperation is a prerequisite for promoting financial stability. The core of the Debt Office’s international crisis management work is our participation in resolution colleges. We also participate in a number of international organisations and working groups that focus on these issues at both the European and global levels.
The authorities responsible for banks and institutions operating in multiple countries must coordinate their resolution planning with the corresponding authorities in the other countries concerned. This coordination takes place in resolution colleges. There is a specific resolution college for each cross-border bank. These colleges consist of representatives from resolution authorities such as the Debt Office as well as from financial supervisory authorities, central banks, deposit insurance schemes and the ministries of finance in the countries where the group has a subsidiary or major branch. The European Banking Authority (EBA) is also invited to participate in the resolution colleges.
Important forum for exchanging information
A resolution college is chaired by the resolution authority of the country where the bank is domiciled. In the college, participants exchange information and make different types of decisions, for example on the minimum requirements for own funds and eligible liabilities (MREL). The college also jointly produces resolution plans at the consolidated level, conducts assessments of the resolvability of banks and institutions and decides whether measures need to be taken to enable resolution of the group as a whole.
In a crisis, it is the task of the resolution college to agree on the measures to be applied in resolution.
For banks domiciled in Sweden, the Debt Office is responsible for drawing up resolution plans and leading the work of the colleges. We are also represented in the resolution college work for foreign banks and institutions that have a subsidiary or branch in Sweden.
Active in a number of international organisations
The Debt Office participates in international regulatory work linked to resolution at both the global and European levels.
- At the global level, we represent Sweden in the Resolution Steering Group of the Financial Stability Board (FSB).
- At the European level, we are on the Resolution Committee of the European Banking Authority (EBA).
- We are part of the European Forum of Deposit Insurers (EFDI) and the International Association of Deposit Insurers (IADI), which are cooperative organisations for deposit insurance schemes.
- We are represented in the Nordic Baltic Stability Group (NBSG) – a forum for resolution authorities, financial supervisory authorities, central banks and ministries of finance in the Nordic and Baltic countries.
- We also participate in a number of permanent or ad hoc working groups within these organisations.