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 

EU legislation