The Financial Stability Authority’s mission and objectives

The Financial Stability Authority’s social impact objectives are reviewed annually in performance agreement negotiations between the Authority and the Ministry of Finance. The Authority’s broad social impact objectives have been fairly well-established over the past few years, with the aim of minimising the costs of banking crises and maintaining the credibility of the deposit guarantee scheme and the resolution mechanism.

FFSA has a clear and strong mission as well as precisely defined legal duties from which its broad social objectives are derived.

Read more on the operations of the Financial Stability Authority

Read more on the legislation pertaining to the Financial Stability Authority’s duties and objectives

The Financial Stability Authority’s duties

In normal circumstances, the Authority’s key tasks include drafting and maintaining resolution plans for credit institutions, investment firms and the central securities depository and carefully preparing for the management of crises.

Furthermore, if an institution encounters serious financial difficulties, the Authority may decide on placing the institution under resolution, in which case the Authority will apply the necessary resolution tools to the institution under resolution. In resolution-related matters, the Financial Stability Authority operates as part of the European Union’s Single Resolution Mechanism (SRM) and participates in the work of the Single Resolution Board (SRB). 

More information on the resolution tools and powers of the Financial Stability Authority

The Financial Stability Authority also acts as Finland’s national authority responsible for the deposit guarantee scheme. As the deposit guarantee authority, FFSA manages the tasks assigned to the Deposit Guarantee, collects and manages Deposit Guarantee Fund and, where necessary, decides on the beginning of the Deposit Guarantee Fund’s repayment obligation if a deposit bank becomes insolvent.  

More information on the deposit guarantee scheme

FFSA manages the Financial Stability Fund, which is external to the State budget. The Fund consists of the Resolution Fund and the Deposit Guarantee Fund which are both financed by separate contributions. These funds and funds from the Single Resolution Fund (SRF) managed by the SRB can be used, subject to the conditions stipulated by the relevant legislation, in crisis situations to cover costs and/or protect depositors.  

More information on the resolution fund

To secure payment services that are of crucial importance to society, the Financial Stability Authority maintains a National Emergency Account System consisting of a National Emergency Account Service and a National Emergency Payment Card Service. In addition, the National Emergency Interbank Payment Scheme extends to securing payment traffic between banks, for which the Bank of Finland has responsibility.