The FIN-FSA supports the measures stated in the ECB’s release and will apply the policies described in it to banks under its supervision. Both the ECB and the FIN-FSA have sought in many different ways to support the ability of banks to continue funding corporations and households.
Following the decision published by the ECB on 12 March, banks have been allowed additional flexibility in meeting their additional capital and liquidity requirements. By the FIN-FSA’s macroprudential decision of 17 March, the systemic risk buffer has been removed and institution-specific requirements have been revised.
In addition, the Government announced today additional finance of EUR 12 billion for corporations through Finnvera. The primary approach consists of guarantee operations, with loans granted by banks.
– The relief measures of the ECB Banking Supervision, the reductions in macroprudential requirement published by the FIN-FSA already earlier this week, and the support package published by the Government today are geared to strengthen banks’ lending capacity under these exceptional circumstances. The FIN-FSA will monitor closely that banks allocate the relief measures to this purpose instead of paying dividends or performance-based bonuses, states Anneli Tuominen, FIN-FSA Director General.
- ECB Banking Supervision’s press release of 20 March 2020: ECB Banking Supervision provides further flexibility to banks in reaction to coronavirus
- Finnish Government’s press release of 20 March 2020: Additional financing of EUR 10 billion made available to companies through Finnvera
- FIN-FSA press release of 17 March 2020: Macroprudential decision: FIN-FSA Board lowers credit institutions’ capital requirements
- FIN-FSA press release of 12 March 2020: Banks provided flexibility in additional capital requirements to ensure continuity of operations in response to coronavirus (COVID-19)