One of the Bank of Finland’s tasks is to contribute to maintaining the reliability and efficiency of the payment system and the overall financial system in Finland. In carrying out this task, the Bank of Finland works closely together with EU central banks and other authorities. The principles of cooperation are laid down, for example, in the following Memoranda of Understanding (MoU), in the issuance of which the Bank of Finland has been one of the contributors.
Memorandum of Understanding on cooperation and coordination on cross-border financial stability between relevant Nordic and Baltic ministries, central banks, financial supervisory authorities and resolution authorities (entered into force 31 January 2018)
The Memorandum of Understanding (MoU) is designed to enhance cooperation and coordination between the Nordic countries and the Baltic States in promoting financial stability and preventing financial crises. By signing the MoU, the public authorities in the Nordic countries and the Baltic States increase their preparedness to take action in relation to cross-border financial stability problems. The new MoU replaces the earlier agreement between the relevant Nordic and Baltic ministries, central banks and financial supervisory authorities, signed in 2010.
This legally non-binding agreement, based on voluntary cooperation, enhances cooperation by establishing common procedures for information sharing and coordination. The MoU defines the activities of a cross-border stability group between the Nordic countries and the Baltic States. The chairmanship of the group rotates between countries. The MoU does not, however, affect the responsibilities in actual crisis resolution, which continue to remain within the sphere of national decision-making.
Memorandum of Understanding between the central banks of the Nordic and Baltic countries, promoting on financial stability through mutual cooperation and the development of cross-border exchanges of information regarding banks with cross-border establishments (valid from 15.12.2016)
The aim of the Memorandum of Understanding is to reinforce the exchange of information between the Nordic and Baltic central banks, and cement cooperation with respect to the prevention, management and solving of financial crises. Through the MoU the central banks are better able to function in situations where banks operating in multiple jurisdictions experience problems.
The MoU is not legally binding, rather it strengthens the parties' cooperation by developing mutual modes of operation in the dissemination and coordination of information. The objective is to reduce the risk of cross-border crises and bolster crisis management measures. In addition, the MoU improves the prerequisites for joint agreement over how a crisis is handled. However, the MoU does not alter the responsibility for handling any crisis by the country experiencing it. Any decisions taken in such a situation remain with the country concerned, as is the current practice.
Memorandum of Understanding on the co-operation framework for the oversight/supervision of Euroclear SA/NV (ESA) (entered into force 5 October 2009, updated 1 December 2011)
The MoU and the resultant supervisory/oversight cooperation focus on the parent company of the Euroclear group’s central securities depositories, Euroclear SA, which is responsible for the provision of common services to the group's central securities depositories. The document outlines the principles for cooperation and information exchange between the authorities.
Memorandum of Understanding on cooperation between supervisors and oversight authorities in the supervision and oversight of the central counterparty European Multilateral Clearing Facility N.V. (entered into force 2 October 2009)
The MoU and the resultant supervisory/oversight cooperation focus on central counterparty services provided by the Dutch European Multilateral Clearing Facility N.V. to the Helsinki Stock Exchange. The document outlines the principles for cooperation and information exchange between the authorities.
Memorandum of Understanding on Cooperation between the financial supervisory authorities, central banks and Finance Ministries of the European Union on Cross-Border Financial Stability (entered into force 1 June 2008)
The MoU is aimed at fostering the stability of the financial systems in the EU and its member states by enhancing cooperation in financial crises and in crisis preparation between EU financial supervisory authorities, central banks and finance ministries. The cooperation includes the exchange of information and situational assessments relevant for crisis management, the coordination of public communication and the organisation of crisis management exercises. This MoU replaces the Memorandum of Understanding on Cooperation between the Banking Supervisors, Central Banks and Finance Ministries of the European Union, issued in 2005.
Memorandum of Understanding on cooperation between the Financial Supervision Authority, Ministry of Social Affairs and Health, Bank of Finland, Insurance Supervisory Authority and Ministry of Finance on financial crisis management (entered into force 31 October 2007)
The MoU is designed to enhance the parties’ crisis preparedness by ensuring an appropriate exchange of information in crisis situations and by strengthening cooperation in the management and resolution of financial crises.
Memorandum of Understanding between the Bank of Finland and the Financial Supervision Authority on financial crisis situations (entered into force 20 March 2006)
The objective of the MoU between the Bank of Finland and the Financial Supervision Authority is to improve the parties’ crisis management capabilities by enhancing cooperation and ensuring an appropriate exchange of information between the parties as necessary for handling potential crisis situations. The MoU deals with cooperation when preparing for crisis management situations, information exchange in connection with the emergence of a crisis or other disturbance, the tasks of the Financial Supervision Authority and the Bank of Finland in crisis management and the forms of cooperation in crisis situations.
Memorandum of Understanding on high-level principles of cooperation between the banking supervisors and central banks of the European Union in crisis management situations (entered into force 1 March 2003)
Ongoing financial integration increases the likelihood of systemic disturbances affecting more than one Member State at the same time. The MoU includes a set of principles and procedures for information sharing to enhance cooperation between EU banking supervisors and central banks in handling cross-border crises.