## Finland: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis and Stress Testing

_IMF Staff Country Reports, February 1, 2023_

## Source details

**Canonical URL:** [Finland: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis and Stress Testing](https://www.imf.org/en/publications/cr/issues/2023/01/31/finland-financial-sector-assessment-program-technical-note-on-systemic-risk-analysis-and-528779)

## Other formats

- [Markdown version](/en/publications/cr/issues/2023/01/31/finland-financial-sector-assessment-program-technical-note-on-systemic-risk-analysis-and-528779/index.md)
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## Bibliographic details
- Published: February 1, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400231155.002

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### Overview and scope
- Publication date: February 1, 2023
- Series: Country Report No. 2023/061
- Pages: 61
- DOI: https://doi.org/10.5089/9798400231155.002
- ISBN: 9798400231155
- ISSN: 1934-7685
- The assessment is based on stress tests simulating the health of Finnish banks under a severe yet plausible adverse scenario.

### Adverse scenario components
- Global and regional inflationary pressures
- Monetary policy tightness
- Financial market turmoil
- A major slowdown of economic activity

### Coverage
- Institutions covered:
  - Four significant institutions
  - Three less significant institutions
- Coverage represents more than 93 percent of total banking assets

### Stress test exercises performed
- Four types of stress test exercises:
  - A top-down solvency stress test
  - A liquidity stress test
  - A wholesale funding cost stress test
  - A contagion and interconnectedness stress test
    - Focused on domestic banking interconnectedness
    - Also focused on interconnectedness of the Finnish banking sector with cross-border counterparties

### Key findings
- The Finnish banking system appears resilient to severe macrofinancial shocks.
- The Finnish banking system remains vulnerable to liquidity shocks.

### Subjects and keywords (as listed)
- Subjects: Commercial banks, Credit risk, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, International organization, Liquidity requirements, Monetary policy, Solvency stress testing, Stress testing
- Keywords: Commercial banks, Credit risk, error correction Model, Global, interest income, liquidity coverage Analysis, Liquidity requirements, risk projection, sensitivity analysis result, Solvency stress testing, Stress testing

*International Monetary Fund. Finland: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis and Stress Testing, IMF Staff Country Reports 2023, 061 (2023).*

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## Content in this bundle

- **FINLAND: IMF Financial Sector Assessment Program**
  - [FINLAND: IMF Financial Sector Assessment Program (Markdown version)](/-/media/files/publications/cr/2023/english/1finea2023003.pdf.md){rel="alternate" type="text/markdown"}
  - [FINLAND: IMF Financial Sector Assessment Program (PDF)](/-/media/files/publications/cr/2023/english/1finea2023003.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2023/01/31/finland-financial-sector-assessment-program-technical-note-on-systemic-risk-analysis-and-528779_