Market Operations
The task of the Market Operations department is to implement the monetary policy of the ECB, manage the financial assets of the Bank of Finland and produce market analyses. The department is responsible for the settlement operations, collateral management and payment traffic related to these operations, and it also supplies TARGET payment system services. The department is further responsible for the risk management related to monetary policy implementation. It also participates in the policy preparation of the various activities in its area of responsibility in the Eurosystem.
The Head of Market Operations is Mika Pösö.
The Department includes the following divisions:
Banking Services
The Banking Services division is responsible for TARGET2 and T2S payment systems services offered to the Bank of Finland's customers, the back office operations related to financial assets and monetary policy as well as collateral management related to the provision of credit to banks. The division also participates in the development and management of the Eurosystem's common market infrastructure and is responsible for ensuring the migration of the Bank's customers to new systems and services produced by the Eurosystem.
Monetary Policy Implementation
The Monetary Policy Implementation division is responsible for the front office operations and policy analysis related to the implementation of monetary policy as well as foreign exchange trading, market analysis and gold investment operations.
Asset Management
The Asset Management division is responsible for investing the Bank of Finland's financial assets. The division’s investment activities are geared to protect the value of the financial assets and the Bank's ability to support the liquidity of Finland's banking system and the Finnish economy. The Bank of Finland's financial assets are invested in high grade debt securities issued by central governments and other government-related institutions, as well as covered bonds, corporate bonds, equities and real estate. The Asset Management division is also responsible for investing the Bank's share of the ECB's foreign reserves together with the Bank of Estonia.
Counterparties and Collateral
The Counterparties and Collateral division is responsible for maintaining and updating the framework of rules for counterparties and collateral associated with the implementation of monetary policy. The division is also in charge of the related analysis and risk management. It is further responsible for ensuring the eligibility of the securities used as collateral in monetary policy credit operations and purchase programmes, including the eligibility of the issuers. The division also coordinates the process for approval of new counterparties.