Financing of the Resolution Sectoral Fund

The Resolution Sectoral Fund is an emergency fund that can be used, if necessary and subject to certain conditions, to resolve a crisis. The Resolution Sectoral Fund can only be used as part of a resolution to ensure the effective implementation of resolution measures.

In order to finance the Resolution Sectoral Fund, contributions are collected from the companies, subsidiaries, and branches provided in §2 of the Financial Crisis Prevention and Resolution Act. The Resolution Sectoral Fund was established in 2015, following the transposition of the resolution framework into Estonian law.

The contributions to the Resolution Sectoral Fund collected from banks are transferred to the European Single Resolution Fund, i.e. the SRF, while contributions collected from investment firms remain in the Resolution Sectoral Fund.