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

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Emil Lopez
Credit risk modeling advisor; IFRS 9 researcher; data quality and risk reporting manager

Karen Moss
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives
Previous Article
FIN-FSA Outlines Focus Areas and Publishes Annual Report for 2019Related Articles
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.