Financial Supervisory Authority enhances monitoring of financial sectorIn response to the corona virus pandemic, the outlook for the global and the Finnish economy has weakened considerably. The pandemic is also threatening to constrain companies’ access to funding in Finland. The Financial Supervisory Authority (FIN-FSA) is enhancing its monitoring of the financial sector and, in cooperation with European and Finnish authorities, has adopted measures to promote access to funding and the smooth functioning of the markets despite the pandemic.
The FIN-FSA participates in the decision-making of the European Central Bank (ECB) and the European Banking Authority (EBA). On 12 March 2020, the ECB and EBA decided on several measures to facilitate lending by banks. On 13 March 2020, the FIN-FSA made a notification to the Ministry of Social Affairs and Health on exceptional circumstances in the financial markets as there is a risk of deterioration in the average solvency of employee pension institutions.
The FIN-FSA confirms, in line with the decisions taken by the European Central Bank, that banks are temporarily exempt from fulfilling certain additional capital and liquidity requirements. This will facilitate credit institutions’ ability to provide funding to non-financial corporations and households and will alleviate the negative economic effects of the pandemic.
The Board of the FIN-FSA has started work on an immediate review of the level of capital requirements that are subject to national decision-making.
At the end of 2019, the Finnish financial sector was solid and is therefore well-equipped to face the changing situation. The FIN-FSA will report in greater detail on the current situation in the financial sector and the measures taken at its press conference on the financial position and risks of supervised entities, to be held on Tuesday, 17 March at 10.00.
The corresponding Finnish-language press release was published on 15 March 2020.
- Bank of Finland’s press release 15 March 2020
- Press release from the ECB Banking Supervision 12 March 2020
- European Banking Authority’s press release 12 March 2020
- FIN-FSA’s press release 13 March 2020: FIN-FSA notification to the Ministry of Social Affairs and Health on exceptional circumstances in the financial markets