Prepared by Chikako Baba (MCM).
To date, the ECB has not made use of the top up power to any of its member countries.
Brandäo-Marques, Huston, and Piñon, “Nordic Linkages,” IMF Working Paper, Forthcoming.
The Financial Supervisory Authority (FIN-FSA) was established on January 1, 2009, following a merger of the former Financial Supervision Authority (functioned under Ministry of Finance until 1993 when its operations became connected to the BoF) and the Insurance Supervisory Authority (under the Ministry of Social Affairs and Health).
Chapter 1, Section 3 of the Act on Credit Institutions.
For example, the FIN-FSA and the BoF websites state clearly that the FIN-FSA is responsible for macroprudential supervision.
That are: “ensuring financial stability and the smooth operation of the individual credit, insurance and pension institutions, and other supervised entities, so as to safeguard the interests of the insured and maintain confidence in the financial market” (Chapter 1, Section 1 of the Act on the FIN-FSA).
Chapter 1, Section 3 of the Act on the FIN-FSA.
See Osinski, Seal and Hoogduin (2013) “Macroprudential and Microprudential Policies: Toward Cohabitation,” IMF Staff Discussion Note 13/05.
In principle. the board members do not formally represent their nominating organizations. In practice, however, the board works similarly to an interagency coordination platform, especially given the coordination at the technical level that takes place before the meetings.
The Act on the FIN-FSA, Section 18.
Supervised entities include: credit institutions, insurance companies, pension funds, investment fund companies and related custodians, investment companies, exchanges, settlement institutions, central securities depositories, central counterparties and payment institutions, related holding companies, deposit insurance fund, investor insurance fund, etc.
For example, issuers of securities, clearing counterparties, insiders, etc.
This MoU, however, predates the Banking Union and the new framework for bank recovery and resolution.
May issue of Bank of Finland Bulletin.
As explained later, the loan-to-collateral ratio is defined as a loan size relative to the collateral securities, including the value of the house to be purchased.
The number would increase significantly in case the largest bank (Nordea) transforms its Finnish operations into a branch.
The Basel III leverage ratio is defined as the Tier 1 capital divided by the total exposure including the off-balance sheet items. The Basel III framework introduces a minimum ratio of three percent.
The Act on Credit Institutions, Chapter 10, Sections 4-6.
MoF Decree 1029/2014.
As discussed earlier, although the recommendation was non-binding, it appears that banks have followed the recommendation.
The Act on Credit Institutions, Chapter 15, Section 11.
The options are the CRR Articles 124 and 164, the CRR Article 458, or Pillar 2 requirements.
For example, a cap on LTV may become less binding and lose effectiveness with the increase of house prices, while caps on LTI or DSTI ratios become more binding when house prices grow faster than household’s disposable income.
The concept of the O-SII resembles to the domestic significant financial institutions in non-EU countries, except it considers the significance beyond the national border within the EU.
Above that rate, until 2015 the authorization of the European Commission must be obtained after the delivery of an opinion by the EBA and ESRB. From 2015 the procedure gets more differentiated depending on the scope, geographic exposure and level of the SRB.
The systemic risk buffer is sometimes used as a substitute for the O-SII buffer because the latter was not yet available until 2015 and is capped at 2 percent. The ESRB has pointed out the delineation of the SRB applied to a small subset of banks with the O-SII buffer as an issue, and recommended a number of amendments to the SRB and the O-SII buffers. (ESRB, 2014)