## Finland: Financial System Stability Assessment Update

_IMF Staff Country Reports, September 2, 2010_

## Source details

**Canonical URL:** [Finland: Financial System Stability Assessment Update](https://www.imf.org/en/publications/cr/issues/2016/12/31/finland-financial-system-stability-assessment-update-24182)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/finland-financial-system-stability-assessment-update-24182/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/finland-financial-system-stability-assessment-update-24182/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/finland-financial-system-stability-assessment-update-24182/bundle-manifest.json)

## Bibliographic details
- Published: September 2, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455207732.002

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### 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

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## Content in this bundle

- **Microsoft Word - DMSDR1S-4225098-v16-Finland FSAP Update 2010 06 FSSA R3 KD.DOC**
  - [Microsoft Word - DMSDR1S-4225098-v16-Finland FSAP Update 2010 06 FSSA R3 KD.DOC (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10275.pdf.md){rel="alternate" type="text/markdown"}
  - [Microsoft Word - DMSDR1S-4225098-v16-Finland FSAP Update 2010 06 FSSA R3 KD.DOC (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10275.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/finland-financial-system-stability-assessment-update-24182_