Featured Product

    FIN-FSA Supports COVID-19 Relief Measures of EBA and ECB for Banks

    March 16, 2020

    FIN-FSA confirms, in line with the decisions taken by ECB, that banks are temporarily exempt from fulfilling certain additional capital and liquidity requirements, in response to coronavirus (COVID-19) pandemic. This will enhance the ability of credit institutions to provide funding to non-financial corporations and households and will alleviate the negative economic effects of the pandemic. The FIN-FSA Board has started work on an immediate review of the level of capital requirements that are subject to national decision-making. FIN-FSA continues to monitor the situation and banks’ contingency measures to address possible effects of the coronavirus on the domestic banking sector.

    ECB and EBA, on March 12, 2020, had decided on several measures to facilitate lending by banks. ECB announced measures that provide the directly supervised (by ECB) banks with flexibility in the fulfillment of certain additional capital and liquidity requirements. These measures aim to support banks in addressing market uncertainty related to the COVID-19 and in continuing to fulfill their role in funding the real economy. Of the credit institutions operating in Finland, the entities directly supervised by ECB are Nordea Bank Abp, OP Financial Group, and Municipality Finance Plc. FIN-FSA points out that the own funds that Finnish banks under the direct supervision of ECB or FIN-FSA can use to fulfill the Pillar 2 additional capital requirement are, however, provided by law. The other measures provided by ECB are also available to banks directly supervised by the FIN-FSA, if necessary. 

    In addition, EBA wants to let banks to focus on and ensure continuity of their core operations and has decided to postpone the EU-wide stress test exercise until 2021. In line with this decision by EBA, FIN-FSA has also decided to postpone to 2021 the stress test exercise for banks under its direct supervision. Additionally, FIN-FSA has taken contingency measures in view of the corona virus to ensure the safety and well-being of staff members and the continuity of the FIN-FSA operations. FIN-FSA is also closely monitoring the situation on the financial markets and in supervised entities in cooperation with other Finnish authorities and European supervisors. The corona virus situation at the FIN-FSA is being monitored and procedures coordinated in a joint group together with the Bank of Finland. 


    Related Links

    Keywords: Europe, EU, Finland, Banking, Stress Testing, COVID 19, Capital Requirements, Liquidity Requirements, Pillar 2, ECB, EBA, FIN-FSA

    Featured Experts
    Related Articles
    News

    EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package

    EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.

    February 26, 2021 WebPage Regulatory News
    News

    EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway

    The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.

    February 25, 2021 WebPage Regulatory News
    News

    PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks

    In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.

    February 25, 2021 WebPage Regulatory News
    News

    FSB Sets Out Work Priorities for 2021

    In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.

    February 25, 2021 WebPage Regulatory News
    News

    EU Publishes Corrigendum to Revised Capital Requirements Regulation

    EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).

    February 25, 2021 WebPage Regulatory News
    News

    ESAs Issue Statement on Application of Sustainability Disclosures Rule

    ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).

    February 25, 2021 WebPage Regulatory News
    News

    EC Consults on Crisis Management and Deposit Insurance Frameworks

    EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.

    February 25, 2021 WebPage Regulatory News
    News

    HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs

    HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.

    February 24, 2021 WebPage Regulatory News
    News

    EBA Proposes Standards for Supervisory Cooperation Under IFD

    EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.

    February 24, 2021 WebPage Regulatory News
    News

    BoE Addresses Banks in Scope of First Resolvability Assessment

    BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.

    February 24, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6629