Resolution Fund

The Central Bank of Iceland’s Resolution Authority takes decisions on payments from the Resolution Fund. With the passage of the Act on Recovery and Resolution of Credit Institutions and Investment Firms, no. 70/2020, the Resolution Fund was established as a separate department of the Depositors' and Investors' Guarantee Fund (TIF). The Fund will cover the cost of resolution proceedings.

It is intended that the Fund should achieve its minimum size – 1% of guaranteed deposits – by year-end 2027. For the first two years of its operation, the Resolution Fund will be financed with the transfer of 1.2 b.kr. per year from the Deposit Department of the TIF. Thereafter, the Fund will be financed with fees paid by credit institutions and investment firms.