The Bank of Finland is an independent institution under public law, which operates using income generated by the Bank itself. As a central bank, its income is made through financial asset investment (which include foreign exchange reserves) and the issuing of banknotes and coins.
At the beginning of the 1990s, the Bank of Finland's capital position weakened considerably due to its burdens in managing the banking crisis that afflicted Finland at the time. However the Bank has gradually been able to re-establish its capital position and its reserves are sufficient for covering any risks for which a central bank may be responsible.
In accordance with the Act on the Bank of Finland, section 21, half of the Bank's profit shall be transferred to the reserve fund and the remainder may be made available for use in line with the needs of the State. The provisions of the Act, however, allow the Parliamentary Supervisory Council to decide on the use of the profit for other purposes, if this is justifiable because of the Bank's financial position or because of the size of the reserve fund.