How are resolution, deposit guarantees and the operations of the Financial Stability Authority regulated and governed?

Regulations governing resolution 

The regulations governing resolution are based on the EU’s Bank Recovery and Resolution Directive (2014/59/EU, BRRD). The overall reform of the Resolution Directive was issued in 2019 (2019/879/EU, BRRD2). The Resolution Directive has been implemented at the national level by the Act on the Financial Stability Authority and the Act on the Resolution of Credit Institutions and Investment Firms.  

The Single Resolution Mechanism of the banking union is governed by the EU’s Single Resolution Mechanism Regulation (806/2014/EU, SRMR). The Single Resolution Mechanism Regulation contains provisions concerning the operations of the Single Resolution Board (SRB) and the role of the national resolution authorities. 

Regulations governing deposit guarantees 

Deposit guarantees have been harmonised by the EU’s Deposit Guarantee Scheme Directive (2014/49/EU, DGSD). The Deposit Guarantee Scheme Directive has been implemented at the national level by the Act on the Financial Stability Authority. 

Guidelines and policies governing the Financial Stability Authority’s operations 

The operations of the Financial Stability Authority are governed by the guidelines and recommendations of the European Banking Authority (EBA).  

Pursuant to Article 16 of Commission Regulation 1093/2010, the competent authority in each Member State must confirm, within two months of the issuance of an EBA guideline or recommendation, whether it complies or intends to comply with that guideline or recommendation. This is referred to as the comply or explain procedure.  
 
Insofar as the guidelines are directed at the competent resolution authority, the Financial Stability Authority assesses the contents of the guidelines and submits a comply notification concerning compliance or non-compliance with the guideline, including the reasons behind the decision, to EBA, which publishes information on its website on compliance or non-compliance with the guideline in different Member States.  
 
Part of the EBA’s guidelines may be directed at the competent supervisory authority and the resolution authority, in which case the compliance notification is sent by both authorities separately. 

The Financial Stability Authority also observes the guidelines issued by the SRB intended to ensure harmonised application practices between the national resolution authorities that are part of the banking union. SRB also submits a comply or explain notification to the EBA. 

Finnish legislation 

Act on the Financial Stability Authority 

Act on the Resolution of Credit Institutions and Investment Firms 

Act on the Financial Stability Authority's Administrative Fees 

Decree of the Ministry of Finance on matters to be taken into account when assessing the resolvability of a credit institution, investment firm or group 

Decree of the Ministry of Finance on the terms of loan agreements between the Deposit Guarantee and deposit banks 

Decree of the Ministry of Finance on the information to be included in the recovery plans of credit institutions and investement firms 

Act on Credit Institutions 

EU legislation

Bank Recovery and Resolution Directive 2014/59/EU (BRRD) 

Amendments to the Bank Recovery and Resolution Directive 2019/879/EU (BRRD2) 

Deposit Guarantee Scheme Directive 2014/49/EU (DGSD) 

Commission Delegated Regulation 2015/63 with regard to ex ante contributions to resolution financing arrangements 

Single Resolution Mechanism Resolution 806/2014 (SRMR) 

Council Implementin Regulation 2015/81 with regard to ex ante contributions to the Single Resolution Fund 

The European Commission's website on bank resolution 

The EBA's technical standards, guidelines and recommendations concerning recovery, resolution and deposit guarantee schemes 

The European Commission's Tier 2 legislation implementation table (continuously updated)