The Bank of Finland's operational goals in the financial system can be crystallised into two key words: stability and efficiency.
Financial markets perform the function of channelling excess funds from private individuals and corporations to those individuals and corporations who are in need of financing. Funds are intermediated by banks and other credit institutions, and directly via financial markets through the issuance of securities. An efficient and reliable functioning of the financial system is vital for the economy as a whole. An efficient allocation of funds, together with financial stability, contributes to economic growth and prosperity.
Payment and settlement systems constitute an essential element of the financial infrastructure. Safe and speedy transfer of payments from payers to beneficiaries serves to reduce trading risks and the costs of trading. Systems related to the execution of securities transactions are also part of financial market infrastructure.
The Bank of Finland's statutory task is to act with a view to maintaining and developing stable, reliable and efficient financial and payment systems in Finland. The Bank of Finland aims to identify risks to financial stability and contribute to the prevention of financial crises. As a means of achieving these objectives, the central bank conducts refinancing and payment operations, analyses threats to financial stability, including system weaknesses, and participates in systems development. The Bank of Finland cooperates closely with other supervisory and regulatory authorities. Safeguarding the stability of the financial system – macroprudential supervision – is thus a shared responsibility.
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