National Resolution Fund
In addition to the Single Resolution Fund (SRF), Finland also has a national Resolution Fund (Fund). The Fund’s assets can be used as part of the resolution of certain Finnish investment firms, as well as Finnish branches of some foreign credit institutions and investments firms.
Financing the National Resolution Fund
The Financial Stability Authority (FFSA) administers the domestic Resolution Fund and collects stability contributions from the liable institutions annually. Currently, certain domestic investment firms are subject to the payment obligation under the Fund.
The stability contribution of an individual investment firm is determined by its size. The National Resolution Fund and the calculation of the contributions to the Fund are based on the Act on the Financial Stability Authority. The Fund reached its target level in 2024, its assets being around EUR 0.9 million. The FFSA informs regularly about the Fund’s size and the amount of contributions payable.
More information: FFSA's news and press releases.
The FFSA can use the National Resolution Fund to cover the costs of resolution measures pertaining to investment firms. Such resolution measures include, for example, granting loans or guarantees to asset management vehicles or bridge institutions as well as buying assets from an investment firm under resolution. The use of the Resolution Fund’s assets to cover a firm’s losses or to recapitalize it requires that the conditions set out in the Act on the Resolution of Credit Institutions and Investment Firms are met.
The National Resolution Fund is administered by the FFSA
The National Resolution Fund is part of the Financial Stability Fund administered by the FFSA. The Financial Stability Fund consists of two separate funds: the Deposit Guarantee Fund and the National Resolution Fund. The Stability Fund is external to the State budget.
Read more about the Financial Stability Fund.
Legislation requires that the assets of the Resolution Fund shall be invested in a secure manner, while ensuring the Fund’s liquidity, return, and diversification of investments.
