This year’s decisions on resolution plans

Press release 20 December 2023

Effective crisis management of banks and other institutions requires thorough planning. The Resolution Board has made this year’s decisions on resolution plans for the eight systemically important banks and one central counterparty. The banks have made good progress in complying with their requirements for own funds and eligible liabilities (MREL) that will apply as of 1 January 2024. MREL is designed so that the banks’ shareholders and creditors – not taxpayers – are to bear the costs of crisis management. Some banks need to increase the pace of their compliance with the European Banking Authority’s guidelines for resolvability.

The Swedish National Debt Office manages systemically important banks that have failed, or are at risk of failing, through resolution. If banks that are deemed systemically important were to be put into bankruptcy, there could be substantial consequences in the financial market. These banks must meet their complete MREL requirements that apply as of 1 January 2024. The banks must also comply with the European Banking Authority’s (EBA) guidelines for resolvability.

“This year, much of the work with the resolution planning is new. We have created our first resolution plan for a central counterparty and also developed the banks’ resolution plans for clarity so that they are more lucid,” says Debt Office Director General Karolina Ekholm.

The Debt Office deems eight banks to be systemically important. The Swedish Export Credit Corporation (SEK) is no longer classified as systemically important.

The eight systemically important banks and their MREL, 1 January 2024
BankTotal risk-weighted requirement1 Total non-risk-weighted requirement 2 
Handelsbanken  27.12 6.00
SEB 27.61 6.00
Swedbank  28.37 6.00
Landshypotek 22.54 6.00
Länsförsäkringar 22.70 6.00
SBAB 22.24 6.00
Skandiabanken  23.40 6.00
Sparbanken Skåne 22.40 6.00
1 Proportion of REA. 
Proportion of LRE.
Note: For more information on how MREL is calculated, see the decision memorandum Minimum requirement for own funds and eligible liabilities (MREL) as well as the MREL policy (in Swedish). 
Table with all MREL for the Swedish systemically important banks.

Banks are to comply with the new EBA guidelines

In this year’s resolution plans, the Debt Office has followed up on the banks’ efforts to comply with the EBA’s guidelines for improving resolvability for institutions and resolution authorities (EBA/GL/2022/01). The guidelines impose, among other things, requirements on the banks to ensure continuity of their critical functions during resolution and develop valuation capabilities to support an effective resolution procedure.

The guidelines will take effect on 1 January 2024. From that point on, they will be a key tool in the Debt Office’s assessment of the banks’ resolvability. This means that insufficient compliance with the guidelines can be grounds for the Debt Office to determine if there are substantive impediments to resolution. A number of banks are behind in their work to achieve compliance with the guidelines. These banks must therefore pick up the pace in order to be compliant with the guidelines when they enter into force.

Decision on a first resolution plan for a central counterparty

Since 12 August 2022, the Debt Office has been the resolution and support authority for central counterparties as well. These are companies that act as an intermediary between buyers and sellers in financial transactions. In Sweden, there is one central counterparty, Nasdaq Clearing Aktiebolag. To be able to best implement a resolution of the central counterparty if necessary, the Resolution Board has made a decision on the first resolution plan for Nasdaq Clearing.

More about the Resolution Board. 

Most banks are not deemed systemically important

The majority of the banks for which the Debt Office conducts resolution planning are not deemed systemically important. The Debt Office is therefore planning for these to be wound up through bankruptcy or liquidation proceedings if they were to fail. For banks in this category, the Debt Office has made decisions on so-called simplified resolution plans and on MREL that does not exceed the capital requirements (investments firms are also included in this category).

Deposit insurance always applies

Regardless of how a bank in crisis is managed, deposit insurance applies. This means that the Debt Office pays out compensation to private individuals, companies, and other legal persons if a bank were to fail. Depositor’s money is protected up to the amount of SEK 1,050,000 per depositor and institution.

Press inquiries

Mats Lilja, press officer

The Debt Office's operations shall be characterized by an openness to the public and the media. The right of access to official business is a cornerstone of Swedish democracy.

Our press officer helps you get in touch with the right person so that you can get your questions answered quickly and easily. He can also provide you with material, answer comprehensive questions about our business and upcoming publications.

Mats Lilja, press officer
Press phone (office hours): +46(0)8-613 47 01, mobile +46(0)721-561 527
E-mail: Mats Lilja