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Resolution Fund

The Resolution Fund may be used to partly fund resolutions of domestic investment firms or Finnish branches of non-EEA credit institutions.

The national Resolution Fund is financed by contributions paid by these institutions. In contrast, contributions raised from domestic credit institutions are transferred annually to the Single Resolution Fund.



Contributions are used for building up the Resolution Fund. Contributions are collected from all credit institutions and investment firms within the scope of resolution legislation. The contributions are determined based on the size of the institution and the risks involved in its business. If the institution's risk indicator is very low, the amount of the contribution based on the institution's size may be adjusted by applying a risk adjusting multiplier that is 0.8 at a maximum. If, on the other hand, the institution's business is considered to involve a high level or risks relative to the other institutions, the risk-adjusted contribution may be up to 1.5 times the contribution based on the institution's size. To alleviate the administrative burden, small institutions pay their contributions in the form of a lump sum.

From 1 January 2016 onwards, the contributions of credit institutions are determined on the level of the Banking Union, and they are calculated by the Single Resolution Board. By the end of January 2016, the Financial Stability Authority will collect from the institutions the statistical data required for determining the size of the contributions. Debtors are informed of the amount of the contribution to be paid by the end of April, and the contribution must be paid no later than 31 May.

In the Banking Union, a single target level for the Single Resolution Fund is introduced gradually. In other words, the annual individual contributions of Finnish institutions is increasingly dependent on the aggregate amount of covered deposits in the entire Banking Union, not only in Finland. It must be noted that as of 1 January 2016, the risk profile of individual Finnish credit institutions is determined relative to all the banks operating in the Banking Union.

The contributions of investment firms will be determined at the national level also in the future, and they are calculated by the Financial Stability Authority.