Finland: Financial Sector Assessment Program-Technical Note on Crisis Management and Resolution
IMF Staff Country Reports, February 1, 2023
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Bibliographic details
- Published: February 1, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400230905.002
Summary
- Focus: Crisis Management and Resolution for the Finland Financial Sector Assessment Program.
- Recent developments reinforce the need for full operational readiness in the Finnish authorities’ crisis management arrangements.
- Authorities have made progress in developing crisis management capabilities and procedures, and have gathered practical experience from recent events.
- Enhancing crisis management capacity within and between authorities is essential to ensure effective implementation in a coordinated manner of agreed crisis management plans, including for bank resolution.
Key findings and observations
- The authorities have developed crisis management capabilities and procedures and have gained practical experience from recent events.
- Current arrangements require strengthened operational readiness to manage future crises effectively.
- Coordination across authorities needs to be improved to implement crisis management plans and bank resolution effectively.
Policy recommendations and required actions
- Increase the centralization of the coordination of the authorities’ respective preparation for, as well as management of, future crises in the Crisis Management Cooperation Group.
- Strengthen crisis management capacity within and between authorities to ensure coordinated implementation of agreed crisis management plans, including bank resolution.
- On deposit guarantee arrangements, the Finnish Financial Stability Authority Deposit Guarantee Fund should ensure that it has sufficient funds under its direct control to ensure its financial autonomy, including through strengthened backstop funding arrangements.
Deposit guarantee arrangements
- Recommendation: The Finnish Financial Stability Authority Deposit Guarantee Fund should ensure it has sufficient funds under its direct control to ensure its financial autonomy.
- Suggested means: Strengthened backstop funding arrangements.
Crisis management coordination
- Recommendation: Increase centralization of coordination within the Crisis Management Cooperation Group for both preparation and management of future crises.
- Rationale: Centralized coordination is essential to implement crisis management plans in a coordinated manner across authorities.
Content in this bundle
- 1finea2023004