IMF Staff Country Reports

This technical note highlights Regulation and Supervision of Less Significant Institutions for the Finland Financial Sector Assessment Program. Finnish banks’ financial indicators remained strong despite the pandemic. The authorities made good progress on the implementation of the recommendations of the 2016 Basel Core Principles assessment. However, the legal framework in Finland limits Finnish Financial Supervisory Authority’s (FIN-FSA) power to issue binding regulations. However, the assessment revealed that availability of resources is a challenge for the FIN-FSA. The supervisory approach and tools of the FIN-FSA improved conspicuously but there is room for further improvement. It is important for the FIN-FSA to complete the necessary work for supervisory boards to be covered by the regulatory and supervisory framework.