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Banks are essential to national economy

Banks play a vital role in the financial market and national economy as a whole. They grant credits, receive deposits, transfer payments and manage the investments and assets of customers. The effective transfer of payments is an essential prerequisite for a well-functioning market economy.

There are more than 200 banks operating in Finland. These included domestic deposit banks, investment banks, and branches and subsidiaries of foreign credit institutions.

The most important piece of legislation that governs banking in Finland is the Act on Credit Institutions. Compliance with the laws and regulations is overseen by the Financial Supervisory Authority and the ECB. They also monitor that banks meet Finnish capital adequacy requirements.

All authorized deposit-taking banks are members of the Deposit Guarantee Fund. If an individual bank becomes insolvent, the Fund will compensate its customers' insured deposits to a maximum of €100,000 per depositor.

The forming of financial groups has been a prevalent phenomenon in the banking sector in recent years. Foreign ownership in the sector is large.

A financial group is formed by one deposit bank and one or several other businesses that operate in the financial sector, such as fund management companies, finance houses, life or non-life insurers.

Recently, a large number of new international and EU-level regulations has been created, many of which are a consequence of the recent financial crisis. In addition, more regulations are currently under way. The effects of the regulatory reforms must be thoroughly analysed, as they will have impact on the whole sector, bank customers included.​

FFI has drawn up a set of principles for Good Banking Practice to establish a common code of conduct in the banking sector.

Finance houses provide vital financing for investments

The dozens of finance houses operating in Finland include credit institutions, branches of foreign credit institutions, and companies that are members of multinational corporate groups (e.g. car importers). FFI's member finance houses belong to various banking groups. They are either authorised credit institutions, or otherwise subject to the Finnish Financial Supervisory Authority through their banking group.

The most important piece of legislation applied to the operations of FFI member finance houses is the Act on Credit Institutions. The financial crisis has also given rise to increase in regulation, which will be one of the sector's main challenges in the near future.

 Materials on banking



Finnish Banking in 2018 Banking in 201826.8.2019 21:00:0027.8.2019 11:51:0026.8.2019 21:00:00Banking
Finnish Banking in 2017 Banking in 201719.9.2018 21:00:0017.9.2018 13:15:5319.9.2018 21:00:00Banking
Finnish Banking 2016 Banking 201621.5.2017 21:00:0022.5.2017 9:27:5621.5.2017 21:00:00Banking
Banks Personnel and Branches 2016 Personnel and Branches 201612.3.2017 22:00:0013.3.2017 9:50:0112.3.2017 22:00:00Banking
Finnish Banking in 2015 Banking in 201521.7.2016 21:00:005.7.2016 15:37:2121.7.2016 21:00:00Banking

 Statements on banking



Joint Nordic comments on the EP proposal on covered bonds Nordic comments on the EP proposal on covered bonds23.9.2018 21:00:0024.9.2018 13:48:2723.9.2018 21:00:00Banking
Consultation on Initiative on an integrated covered bond framework on Initiative on an integrated covered bond framework15.5.2018 21:00:0016.5.2018 13:37:0115.5.2018 21:00:00Banking
Consultation Paper on a Hybrid Methodology for Euribor Paper on a Hybrid Methodology for Euribor14.5.2018 21:00:0021.5.2018 9:04:3714.5.2018 21:00:00Banking
Consultation on PRIIPs Key Information Documents on PRIIPs Key Information Documents28.1.2016 22:00:0029.1.2016 15:38:3928.1.2016 22:00:00Banking
Draft guidelines on Product Oversight and Governance (POG) arrangements for retail banking products guidelines on Product Oversight and Governance (POG) arrangements for retail banking products9.2.2015 22:00:0013.2.2015 16:54:189.2.2015 22:00:00Banking


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