Finland: Financial System Stability Assessment Update
IMF Staff Country Reports, September 2, 2010
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- Canonical URL
- Finland: Financial System Stability Assessment Update
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Bibliographic details
- Published: September 2, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455207732.002
Key findings and summary
- The Finnish financial sector has weathered during the global crisis.
- Banks’ capital buffers were sufficient, but liquidity and credit risks required monitoring.
- There is a need for a strong crisis management framework.
- An evaluation of the Deposit Guarantee Fund (DGF) using Core Principles for Effective Deposit Insurance Systems would support reform efforts.
- Banking supervision is robust and follows relevant EU Directives and the Basel Core Principle (BCP) for Effective Banking Supervision closely.
- The Financial Supervisory Authority (FIN-FSA) has implemented the 2001 Financial Sector Assessment Program (FSAP) recommendations, but challenges remain.
Supervision, regulation, and authorities
- Banking supervision:
- Described as robust.
- Closely follows relevant EU Directives and the Basel Core Principle (BCP) for Effective Banking Supervision.
- Financial Supervisory Authority (FIN-FSA):
- Has implemented the 2001 FSAP recommendations.
- Ongoing challenges remain in supervision and oversight.
Crisis management and deposit insurance
- Crisis management:
- The study assesses a need for a strong crisis management framework for the Finnish financial sector.
- Deposit Guarantee Fund (DGF):
- Recommends evaluation of the DGF using Core Principles for Effective Deposit Insurance Systems to support reform efforts.
Risks highlighted
- Liquidity risk: Requires monitoring despite adequate capital buffers.
- Credit risk: Requires monitoring despite adequate capital buffers.
- Funding profile and parent bank relationships are noted as relevant keywords indicating areas of attention.
Subject areas and keywords captured in the assessment
- Subject: Bank credit, Banking, Commercial banks, Credit, Financial institutions, Income, Loans, Money, Mortgages, National accounts
- Keywords: bank assets, bank insolvency regime, banking system, Commercial banks, CR, Credit, debt service, FIN-FSA's power, FIN-FSA's supervision, FIN-FSA's understanding, financial system, funding profile, Global, Income, ISCR, liquidity crisis, Loans, Mortgages, parent bank, resolution framework
Content in this bundle
- Microsoft Word - DMSDR1S-4225098-v16-Finland FSAP Update 2010 06 FSSA R3 KD.DOC