About the Financial Stability Authority
The Financial Stability Authority (FFSA) is an agency established in 2015 that acts as the national resolution and deposit guarantee authority. FFSA’s mandate is to protect depositors, taxpayers and the society from the effects and expenses of financial crises as well as prevent financial crises and promote bail-in. In addition, the FFSA is responsible for managing the National Emergency Account System which is one of the tools used to secure the continuity of daily payments in the event of serious disruptions that the society may face.
FFSA is part of the European cooperation network comprised of resolution and deposit guarantee authorities. In resolution-related matters, FFSA is part of EU's Single Resolution Mechanism (SRM), participating in the work of the Single Resolution Board (SRB). FFSA works in close cooperation with the other authorities responsible for financial stability in Finland – particularly the Finnish Financial Supervisory Authority, the Bank of Finland and the Ministry of Finance.
Resolution
FFSA is responsible for resolution-related matters concerning credit institutions, investment firms and the central securities depository. FFSA’s key duties include drafting and maintaining resolution plans for institutions, deciding whether a failing institution is placed under resolution and applying the necessary resolution tools to an institution under resolution.
Deposit guarantee
FFSA is responsible for the Deposit Guarantee System. In this area, the FFSA handles the tasks assigned to the Deposit Guarantee System and manages Finland’s National Deposit Guarantee Fund. Deposit guarantee protects depositors’ assets in the event that a bank becomes permanently insolvent. In compensation events, FFSA pays deposit guarantee compensation to the bank’s depositors out of the Deposit Guarantee Fund.
Read more about Deposit Guarantee.
National Emergency Account System
To secure the continuity of daily payments that are critical to the society, the FFSA maintains a National Emergency Account System consisting of a National Emergency Account Service and a National Emergency Payment Card Service, together with a back-up system securing payment traffic between banks which is operated by the Bank of Finland.
Read more about the National Emergency Account System.
Financial Stability Fund
FFSA administers the Financial Stability Fund. The Financial Stability Fund consists of two separate funds: the Deposit Guarantee Fund for safeguarding the assets of depositors when a bank becomes insolvent, and the National Resolution Fund that can be used for partial funding in a resolution situation.
Read more about the Financial Stability Fund.