Cooperation for safeguarding financial stability

The Bank of Finland fosters financial stability by engaging in diversified cooperation both in Finland and internationally. The Bank of Finland participates in the work of many Finnish and international committees and institutions important for financial market stability. The key partners for cooperation in Finland are the Financial Supervisory Authority, the Ministry of Finance and the Financial Stability Authority and abroad the European Central Bank, the European Systemic Risk Board and Nordic authorities.

In the analysis of systemic risks and macroprudential policy, the Bank of Finland works in close cooperation with the Financial Supervisory Authority, in particular. Experts at the Bank of Finland and the Financial Supervisory Authority cooperate in preparing, for example, a quarterly Macroprudential Report and participate in the preparation of macroprudential policy decisions.

The Bank of Finland engages in close cooperation in Finland also with the Ministry of Finance and the Financial Stability Authority, for example on questions concerning macroprudential, resolution and financial regulation issues. The Bank of Finland participates in a crisis management cooperation group established by authorities and in its various sub-groups.

European partners play a key role in safeguarding financial stability

In terms of financial stability, the Bank of Finland's key foreign partners are the European Central Bank (ECB) and the European Systemic Risk Board (ESRB).

The Eurosystem plays a key role in promoting the stability of the euro area financial system, whereas the ESRB is responsible for the macroprudential oversight of the EU financial system. The Bank of Finland has a representative on the ECB's Macroprudential Forum and the ESRB's General Board. The Bank of Finland also participates in the analysis and policy work of the ECB and the ESRB, in committees and many permanent and temporary expert working groups. 

The Bank of Finland has a representative on the Supervisory Board of the Single Supervisory Mechanism, which is part of the European banking union. In addition, the Governor of the Bank of Finland is currently First Vice-Chair of the ESRB General Board. The Single Supervisory Mechanism is responsible for the supervision of banks in the countries that participate in the banking union, together with the national supervisory authorities.

The Bank of Finland also participates in the work of the European Banking Authority (EBA). The task of the EBA is to ensure effective and consistent supervision of banks in the EU. A representative of the Bank of Finland participates also in the work of the EU's Economic and Financial Committee (EFC).

Tight Nordic connections

The Bank of Finland also cooperates extensively with other Nordic and Baltic central banks in the area of financial stability. The Bank of Finland has a representative on the Nordic-Baltic Macroprudential Forum (NBMF) and the Nordic-Baltic Stability Forum (NBSF). The Bank of Finland also participates in the sub-working groups of both networks, in which countries provide to each other status reports on the regional financial stability situation and threats and develop macroprudential analysis and policy.

The Bank of Finland also develops, in cooperation with Nordic and Baltic authorities, crisis management and executes joint crisis management exercises.

Other international forums in which the Bank of Finland participates in international macroprudential work are the Network for Greening the Financial System (NGFS), a global forum formed by central banks and financial supervisors, the Bank for International Settlements (BIS), the Organization for Economic Cooperation and Development (OECD), the International Monetary Fund (IMF) and the World Bank.

The Bank of Finland also provides regular financial stability updates and risk assessments to international rating agencies, for example.