Crisis management of banks and other institutions - Riksgalden.se

Crisis management of banks and other institutions

11 June 2018

The Swedish National Debt Office's (the Debt Office) responsibility for financial crisis management has been built up over the past ten years. In a report we present the methods available in Sweden for crisis management of banks and other institutions.

Financial crisis management is an important part of the work of safeguarding financial stability and protecting the economy from the costly effects that a financial crisis may cause. If a crisis occurs in a bank or another institution, the Debt Office is responsible for managing the situation.

In the report, the Debt Office explains that crisis management differs depending on whether an institution is deemed to be important to the financial system or not. Crises in systemically important institutions are managed through resolution. Institutions that are not considered to be systemically important can be put into bankruptcy. The deposit insurance scheme applies regardless of how the crisis is managed.

The Debt Office also describes how the financial sector should bear the direct costs of the crisis management. Primarily, this come about by owners and investors will bear the costs. In order to make the crisis management effective, extensive preparations and planning are required. The Debt Office therefore carries out crisis planning for all institutions. The preparatory work includes close cooperation with national and international authorities and agencies.

Financial crisis management

The Swedish version of the publication was published June 11, 2018.