Sweden: Financial Sector Assessment Program-Technical Note-Crisis Readiness, Management, and Resolution

IMF Staff Country Reports, October 5, 2017

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Canonical URL: Sweden: Financial Sector Assessment Program-Technical Note-Crisis Readiness, Management, and Resolution

The Technical Note discusses findings and recommendations from the Financial Sector Assessment Program (FSAP) for Sweden in the areas of financial safety net and crisis management arrangements.
Since the 2011 FSAP, Sweden’s financial safety net and crisis management frameworks, including bank resolution and contingency planning, have improved.
In response to the FSAP and the overhaul of pertinent EU rules, Sweden has:
- enacted a host of new legislation,
- introduced a resolution regime for credit institutions and certain investment firms,
- revised its deposit insurance system, allowing it to fund resolution measures.
Despite these reforms, further investments are needed to ensure operational capacity to rapidly deploy recovery and resolution tools and to strengthen the safety net and crisis management frameworks.

Improvements noted since 2011:
- Enhanced bank resolution and contingency planning arrangements.
- Legal and institutional changes aligned with EU rule changes.
Resolution regime:
- A resolution regime was introduced covering credit institutions and certain investment firms.
Deposit insurance:
- The deposit insurance system was revised to allow funding of resolution measures.
Operational capacity gap:
- Additional investments are required so authorities can rapidly deploy recovery and resolution tools when needed.

Subject areas covered: Bank resolution, Bank resolution framework, Crisis prevention, Financial crises, Financial safety nets, Lender of last resort.
Keywords listed in the source: Bank resolution, Bank resolution framework, bank resolution regime, BRRD regime, central bank, CR, Crisis prevention, equity capital, express authority, FSC secretariat, Global, government's consideration, helps authority, ISCR, Lender of last resort, resolution authorities, resolution authority, uniform bank resolution regime.