Introduction

Finansiel Stabilitet is required to contribute to ensuring financial stability in Denmark, including through the restructuring and resolution of certain failing financial companies which are unable to continue operations on their own. Furthermore, in such situations we need to ensure that customers still have access to accounts and financial services.

Contingency planning for crisis management requires considerable preparation and practice – also when the crisis pendulum is neutral. We continuously plan and practice contingency exercises to gauge the crisis preparedness of financial companies, for example by drawing up resolution and restructuring plans and by conducting tests in collaboration with the financial companies, the Danish Financial Supervisory Authority and Danmarks Nationalbank.

Crisis management of financial companies in Denmark is based on the fundamental principle that it must be carried out based on a fair approach and must be in the interest of the general public. It is also essential that losses inflicted on taxpayers etc. are mitigated. Therefore, the sector is saving up contingency funds in the form of the Resolution Fund, which, like the Guarantee Fund for Depositors and Investors, is managed by Finansiel Stabilitet.

In a European context, the Danish crisis management of financial companies has attracted much interest. Large parts of the EU’s crisis management initiatives for banks (the BRRD) are similar to the approach adopted in Denmark several years ago.

In 2022 and the beginning of 2023, the last liability claims arising from the financial crisis were finally settled as the courts rendered their decisions in the cases involving ebh Bank, Løkken Sparekasse, Roskilde Bank and Eik Banki. The legal aftermath of the financial crisis was certainly a long and costly affair – both financially and in terms of the human cost. Based on this and other experience from the financial crisis, legislation was gradually adapted.

One area attracting increased interest these years is IT security management. We are acutely aware that this task requires new skills and contingency initiatives. Here, the risk is not a shortage of capital or liquidity, but rather that IT and payment systems, among others, are put out of action or that data are not correct or not available. This will be a key focus area for the coming years as well, requiring close collaboration between authorities and financial companies.

Finansiel Stabilitet is ready to take on other relevant government tasks in addition to its core tasks and to contribute to value creation in society. We are already solving several tasks for the government, including the issue of government guarantees for loans to buy property in rural districts.

The European Commission has submitted a proposal for the recovery and resolution of non-life and life insurance undertakings, which is currently being negotiated in the EU. When the directive is adopted, Finansiel Stabilitet will make preparations to take over the task. Although the directive covers a different part of the financial sector than the financial companies with which Finansiel Stabilitet is already working, many of the issues involved are the same and the contemplated tools and solutions will generally be familiar to us.

In order for Finansiel Stabilitet to be able to perform its core tasks such as ensuring financial contingency planning, we need to make sure that we maintain the skills and preparedness required. We must be able to continue to attract, develop and retain talent to solve the often complex tasks involved in our activities. We must be able to quickly scale up contingency plans and address the complexity of the next crisis, which nobody knows the scope of in advance. On behalf of the Board of Directors, I would like to extend my sincere thanks to our skilled employees, owners, business partners and the financial companies for competent and good collaboration in 2022.