Introduction

Chairman of the Board of Directors

Finansiel Stabilitet is an institution that is critical to society in that it, together with the sector, the Danish Financial Supervisory Authority (FSA) and Danmark’s Nationalbank, contributes to ensuring financial stability in Denmark. If a credit institution is failing, Finansiel Stabilitet is ready to take it over and ensure that businesses and individuals still have access to their accounts and other payment infrastructure.

Despite geopolitical challenges and risks and volatility in a number of areas, the Danish financial sector is strong. However, we have learned from experience the prudence of having a reliable and strong contingency planning set-up that may be activated if a credit institution encounters serious difficulties. When confidence in an institution is lost, prompt action is required to ensure the continuation of critical infrastructure and customers’ access to accounts and financial services.

Contingency planning for financial crisis management requires preparation and practice. We therefore regularly update our contingency plans and regularly participate in financial crisis simulation exercises. In 2024, Finansiel Stabilitet coordinated a comprehensive test of the financial authorities’ contingency planning for crisis management in the eight Nordic and Baltic countries.

The financial sector saves up contingency funds for crisis management through the Deposit Guarantee Fund and the Resolution Fund, both managed by Finansiel Stabilitet. Our contingency planning for crisis management of credit institutions in Denmark is based on the fundamental principles of fair implementation, safeguarding the public interest and minimising taxpayers’ losses. This strengthens confidence in the financial system.

In 2024, Finansiel Stabilitet was able to wind up the last remaining subsidiaries from banks taken over by Finansiel Stabilitet in connection with the financial crisis.

Nevertheless, Finansiel Stabilitet still has exposures acquired in connection with the financial crisis. While outstanding claims in the amount of DKK 8.8 billion have been written off in full, they have not been waived, and Finansiel Stabilitet continues its efforts to fully or partially recover these claims.

The recently adopted EU Insurance Recovery and Resolution Directive will create a contingency planning set-up for insurance and pension companies comparable to the one in place for credit institutions. The Directive is to be implemented in Danish law by 1 January 2027 at the latest. On implementation of the Directive in Denmark, Finansiel Stabilitet and the Danish FSA have been jointly appointed as the resolution authority, with the same division of duties as for credit institutions.

Finansiel Stabilitet is also ready to take on other relevant public tasks in addition to its core tasks and to contribute to value creation in our society. We consider it an advantage to diversify and expand our area of responsibility, so that we can also ensure an excellent contingency planning set-up in connection with related tasks. With this in mind, we have in recent years taken on tasks on behalf of the Danish government in areas where Finansiel Stabilitet’s competencies may be applied.

At 1 November 2024, we took over properties and other assets from Kopenhagen Fur as part of the task of resolving assets acquired by the government from mink-related businesses. More assets will be taken over in 2025.

At a time of increasing digitalisation and geopolitical risks, advanced cyber threats naturally follow. Finansiel Stabilitet actively collaborates with other authorities to ensure a coordinated and effective response to the risks and consequences of cyber incidents that may affect the financial system.

Our core task of ensuring a financial contingency planning set-up requires that the organisation’s expertise and contingency plans are maintained and continually developed and that we remain able to attract, develop and retain talented people to handle our tasks. We must be able to quickly scale up the contingency planning set-up and address the complexity of the next crisis, which we do not know the scope of in advance. International sharing of experience, cooperation on contingency plans and crisis exercises are essential in this respect, and our new tasks and functions contribute to maintaining and honing our skills.

On behalf of the Board of Directors, I would like to extend my sincere thanks to our skilled employees and Management, our owner, business partners and the financial institutions for their competent and good collaboration in 2024.