Financial Stability Authority (FFSA) has initiated the 2024 resolution planning cycle for credit institutions and investment firms under its purview.
The approximately year-long planning cycle begins in the spring with regular reporting from the institutions, in addition to which the institutions are expected to engage in development work during the cycle on prioritized areas based on previous work.
The extent of expectations, monitoring, and testing directed at individual institutions during the planning cycle depends on the resolution strategy defined for each institution. The FFSA provided information on expectations for this year's planning cycle to each institution targeted for resolution planning at the beginning of March.
The key objective is to ensure that the institutions' resolution strategies are feasible in crisis situations, enabling stabilization of operations and controlled reorganization. In the current cycle, the FFSA particularly emphasizes readiness related to securing liquidity in resolution, reducing risks associated with operational continuity, evaluating potentially functions that could possibly be separated in a crisis situation, and testing the production of necessary information.
Learn more about resolution planning on the FFSA website.
More information: Head of Resolution Unit, Reima Letto, reima.letto(at)rahoitusvakausvirasto.fi.
