The Resolution Fund generated a surplus of DKK 907 million in 2022 (2021: DKK 1,022 million). The surplus was mainly attributable to payment of contributions to the Resolution Fund of DKK 1,124 million.

In 2022, the Resolution Fund’s administrative expenses amounted to DKK 17 million, roughly offset by income allotted through the Finance and Appropriation Act. The administrative tasks relate to, among other things, legal work, work involved in preparing resolution plans, participation in resolution colleges for cross-border SIFIs and building up of the Resolution Fund.

Including the contribution collected in 2022 of DKK 1,124 million, DKK 6.3 billion has been collected in total. In 2022, banks contributed DKK 764 million, mortgage credit institutions contributed DKK 360 million and investment companies contributed DKK 92 thousand. Of the total contribution, DKK 1,123 million was related to ratio-based collection of contributions from the 31 largest institutions. The remaining approximately DKK 1 million was paid by the remaining 44 institutions.

In 2022, significant progress was made in several areas of the work to develop resolution plans for Danish, Faroese and Greenland banks, mortgage credit institutions and the investment companies covered by the Act on Restructuring and Resolution of Certain Financial Enterprises. This work forms part of a common European effort to ensure the credibility of the way member states handle failing banks and mortgage credit institutions etc., so that the institutions’ crisis management bears the full responsibility for the operation and capital position of the institutions. A central part of the resolution plans is setting out a preferred resolution strategy, which is taken into account when the Danish FSA determines the requirement for eligible liabilities in order to facilitate the continuity of a failing institution’s critical functions. The resolution plans will be further developed over the next couple of years. This entails greater focus on establishing actual scripts in collaboration with the institutions to ensure that the resolution plan is operational.

Finansiel Stabilitet also participates in international resolution colleges for the purpose of preparing resolution plans for cross-border SIFIs, where these have significant branches or subsidiaries in Denmark. For cross-border SIFIs domiciled in Denmark, the group resolution authority is Danish, and Denmark is in charge of the resolution college.

In addition to these activities, Finansiel Stabilitet continually focuses on testing the contingency resolution measures of the institutions. In order to achieve the resolution objectives it is from a practical perspective vital that Finansiel Stabilitet quickly gets access to all relevant data. The testing evaluates whether the institutions have procedures and data access that will enable them to supply data to Finansiel Stabilitet in a time-critical resolution situation. Finansiel Stabilitet and the Danish FSA together perform the testing of contingency resolution measures.