Evolving, reliable resolution authority – financial statements of the Financial Stability Authority and Financial Stability Fund have been published
In 2018, the Financial Stability Authority continued its long-term efforts to improve its operating capability and reliability. The Financial Stability Authority, soon celebrating its fourth anniversary, achieved its performance targets. The operating environment of the Authority was eventful, including Nordea Bank’s re-domiciliation to Finland in October, anticipation on various cooperation fora of Brexit looming in March 2019 and the preparation of changes to resolution legislation within the EU.
Major steps were taken during the year in resolution planning both in terms of scope and content. The work done lays a solid foundation for the operating year 2019, when institution-level characteristics can be taken into account in planning in increasing detail. As regards Nordea, the operation of the Authority reflected the significantly more crucial role of the Authority in resolution planning for the banking group. The capacity of the Deposit Guarantee Fund will be strengthened significantly in coming years, as its expansion will reflect the growth of the deposit stock of the banking sector due to Nordea’s re-domiciliation.
The operational efficiency of the Authority was also developed through various IT systems projects in order to both improve the quality of resolution planning and to ensure the operating capability of the deposit guarantee scheme. Solid progress was made during the year in the project for the development of the deposit guarantee payout system, which is intended to be taken into production in 2019 after the completion of the development and testing phases.
The operating and crisis management capability of the Authority was developed and tested in expert seminars and national simulation exercises in cooperation with other domestic authorities. The lessons learned from the simulations will be utilised in further development.
The organisational reform of the Authority implemented in early 2018 seeks better foundations to improve its operating capability and efficiency.
FFSA Director General Tuija Taos ([email protected])