Finland: Financial Sector Assessment Program

Since the 2010 IMF FSAP update, Finland’s Contingency Planning and Crisis Management (CPCM) framework, including bank recovery and resolution, has improved. The establishment of the Banking Union brought about fundamental changes: the advent of the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM); the initiation of ECB supervision over systemic banks; and the subjection of all banks to recovery and resolution planning. These actions complemented previously introduced EU-wide systemic risk monitoring through the European Systemic Risk Board. Consequently, Finland has enacted a host of new legislation and has established a national resolution authority. It has also revised its deposit insurance system.