Debt Office gets expanded bank crisis management powers
Press release 11 March 2015
The Government has announced its intention to appoint the Swedish National Debt Office national resolution authority, responsible for resolution planning and managing failing banks according to the Bank Recovery and Resolution Directive (BRRD). This gives the Debt Office an expanded and central role in the work to maintain financial stability in Sweden.
– Allocating both planning and crisis management tasks to one authority ensures that the adverse effects of future bank crises on public funds and the economy are kept to a minimum. This also clarifies accountability, says Director General Hans Lindblad.
As resolution authority, the Debt Office will have the power to take control of failing financial institutions and take suitable measures. The resolution authority should always make sure that any losses of a failing institution are primarily borne by shareholders and creditors. The authority's responsibility also includes extensive planning tasks, including setting up resolution plans and determining minimum requirements for eligible liabilities. In addition, the Debt Office will be responsible for charging resolution fees from the institutions.
– We welcome the announcement by the Government and will now start preparing for taking on these new tasks, says Hans Lindblad.
The appointment of a resolution authority follows the EU directive. The Government is currently working on the implementation of BRRD into Swedish law.
Linda Wik, public relations officer, +46 8 613 46 18