Finland: Selected Issues

International Monetary Fund

No 2019/008, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues paper summarizes Nordea’s operations and business model; the macroeconomic and prudential implications of the move; and policy responses taken so far. The IMF staff’s assessment is that banking supervision in the euro area has improved significantly following the creation of the Single Supervisory Mechanism, which should mitigate potential risks from Nordea’s move; meanwhile, the Nordic authorities have done much, in conjunction with the European Central Bank, to ensure that potential gaps and fragmentation across national jurisdictions are avoided. The resolution framework is designed to prevent taxpayers having to bail out banks, but is new, and work on building the crisis preparedness of euro area banks is still under way. The banking union is not yet complete, details of the backstop for the Single Resolution Fund need to be finalized and a common euro area deposit insurance should be made fully operational. At the same time, Nordea is also operating in non-euro area member states—maintaining cooperation between euro area and noneuro area institutions remains important.

Keywords: ISCR; CR; bank; Finland; O-SII buffer; capital requirement; banking group Nordea; Denmark A/S; Nordea's liquidity ratios; banking union; Nordea's depositor; Nordea's operation; Bank resolution framework; Systemic risk; Liquidity requirements; Deposit insurance; Bank resolution; Global; Baltics (search for similar items in EconPapers)
Pages: 13
Date: 2019-01-15
New Economics Papers: this item is included in nep-mac and nep-rmg
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