Finland: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Financial Policy Transparency, Banking Supervision, Insurance Supervision, Securities Regulation, and Payment Systems
IMF Staff Country Reports, November 21, 2001
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- Finland: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Financial Policy Transparency, Banking Supervision, Insurance Supervision, Securities Regulation, and Payment Systems
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Bibliographic details
- Published: November 21, 2001
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451813203.002
Overview and key findings
- Finland has a very sound financial system.
- Finland is at the forefront of electronic banking and financial sector consolidation.
- Arrangements for crisis prevention and management need to balance the conflicting goals of minimizing moral hazard and providing adequate safety nets in the financial system.
- There are some deficiencies as regards compliance with certain of the banking supervision and securities standards.
- In view of the advanced stage of development of Finland's financial system, supervisory arrangements will need to meet and even exceed international standards.
Subject coverage and keywords
- Subject: Banking, Credit, Financial institutions, Financial markets, Financial sector policy and analysis, Financial stability assessment, Insurance, Insurance companies, Money, Payment systems
- Keywords: Baltics, banking system, capital adequacy ratio, cash settlement, central bank, CR, Credit, Financial stability assessment, financial system, holding company, Insurance, Insurance companies, internal audit, investment strategy, ISCR, monetary policy, Payment systems, private sector, process, return on equity, rule
Implications for policy and supervision
- Supervisory arrangements should be calibrated to the advanced development of Finland's financial system.
- Crisis prevention and management frameworks should explicitly address the trade-off between reducing moral hazard and ensuring adequate safety nets.
- Compliance shortfalls in banking supervision and securities standards should be remedied to align with international expectations, and in some areas supervisory practices may need to exceed those international standards.
International Monetary Fund. Monetary and Capital Markets Department "Finland: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Financial Policy Transparency, Banking Supervision, Insurance Supervision, Securities Regulation, and Payment Systems", IMF Staff Country Reports 2001, 214 (2001).
Content in this bundle
- Finland: Financial System Stability Assessment - ISCR/01/214