Debt Office proposes policy for assessing which banks should be managed through resolution

News 2 July 2026

Today, the Swedish National Debt Office is submitting for consultation a proposal for a Policy for assessing whether a bank should be managed through resolution.

The Debt Office is Sweden’s resolution authority, which means that we are responsible for managing systemically important banks and certain other financial institutions via resolution if they are no longer viable and are failing.

This responsibility includes assessing which banks are to be managed through resolution and are therefore deemed systemically important. The assessment is based on the potential consequences if a bank were to fail.

“By developing a policy and circulating it for consultation, we intend to both increase understanding of the Debt Office’s resolution work as well as make our assessments more predictable,” says Fredrik Bystedt, head of the Financial Stability department.

The aim of managing systemically important banks via resolution is to avoid serious disruptions of the financial system and ensure that critical services and functions for the real economy can continue to be provided. Banks that in the Debt Office’s assessment are not to be managed through resolution are to instead be wound up through bankruptcy or liquidation proceedings if they are no longer viable.

“In the policy, we describe the approach that the Debt Office applies for determining which banks are systemically important. The systemic importance assessment is based on a number of indicators with related thresholds, although it is not done strictly on the basis of these thresholds. We conduct an overall assessment that can also take into account other circumstances, including those which may be relevant in an actual crisis,” says Louise Welin, senior analyst at the Financial Stability department.

The Debt Office conducts an annual assessment to determine which banks should be managed through resolution. This assessment is presented in a resolution plan that is prepared and decided on for every bank in Sweden. Resolution planning is vital for being able to manage a bank in distress effectively in an actual crisis. The Debt Office usually decides on a new resolution plan in December.

The last day to respond to the policy proposal is 4 September 2026.

Proposal for a Policy for assessing whether a bank should be managed through resolution