Finland: Selected Issues

January 15, 2019

Preview Citation

Format: Chicago

Finland: Selected Issues, (USA: International Monetary Fund, 2019) accessed September 18, 2024

Summary

This Selected Issues paper summarizes Nordea’s operations and business model; the macroeconomic and prudential implications of the move; and policy responses taken so far. The IMF staff’s assessment is that banking supervision in the euro area has improved significantly following the creation of the Single Supervisory Mechanism, which should mitigate potential risks from Nordea’s move; meanwhile, the Nordic authorities have done much, in conjunction with the European Central Bank, to ensure that potential gaps and fragmentation across national jurisdictions are avoided. The resolution framework is designed to prevent taxpayers having to bail out banks, but is new, and work on building the crisis preparedness of euro area banks is still under way. The banking union is not yet complete, details of the backstop for the Single Resolution Fund need to be finalized and a common euro area deposit insurance should be made fully operational. At the same time, Nordea is also operating in non-euro area member states—maintaining cooperation between euro area and noneuro area institutions remains important.

Subject: Bank resolution, Bank resolution framework, Banking, Deposit insurance, Financial crises, Financial regulation and supervision, Financial sector policy and analysis, Liquidity requirements, Systemic risk

Keywords: Baltics, Bank, Bank resolution, Bank resolution framework, Banking group Nordea, Banking union, Capital requirement, CR, Denmark A/S, Deposit insurance, Finland, Global, ISCR, Liquidity requirements, Nordea's depositor, Nordea's liquidity ratios, Nordea's operation, O-SII buffer, Systemic risk

Publication Details

Pages:

13
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/008
Stock No:

1FINEA2019002
ISBN:

9781484393550
ISSN:

1934-7685

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