|Population (2016)||5 487 308 (0.00%)|
|EU Status||member since 1995|
|National Currency||EUR (Euro) since 1 January 1999|
|Nominal GDP (2015)||207.2 bln EUR (+0.01%)|
|Nominal GDP per Capita (2015)||37 800 EUR (+0.01%)|
|Real GDP Growth (2015)||0.5 % (2014: -0.1 %)|
|CPI, MoM (Sep 2016)||0.2 % (Aug 2016: 0.0 %)|
|CPI, YoY (Sep 2016)||0.5 % (unchanged)|
|CPI, Year Average (2015)||-0.2 % (2014: 1.2 %)|
|Unemployment Rate (2015)||9.4 % (2014: 8.7 %)|
|Government Bond Yield (Sep 2016)||0.08 % (Aug 2016: 0.06 %)|
|Credit Ratings (as of Sep 2016)|
|Fitch||AA+||very high credit quality, outlook stable|
|Moody's||Aa1||high grade, outlook stable|
|Double Taxation Agreements||70 signed agreements|
|Exchange on Request||48 signed agreements|
|Automatic Exchange||starts in September 2017|
|FATCA||IGA in effect since 05 March 2014, Model 1|
|Financial Market Development||5.5 (max 7.0)||rank: 5th out of 138 countries|
|Banks' Soundness||6.6 (max 7.0)||rank: 1st out of 138 countries|
|Banking Industry Country Risk||2||(1 - lowest risk, 10 - highest risk)|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||100 000 EUR|
|Country Ceiling for Deposits|
|Local Currency (Euro)||Aaa||prime|
|Deposit Rates (Aug 2016, EUR)||0.48 % (Jul 2016: 0.42 %)|
|Banking Sector Structure|
|Number of Banks||285|
|Recent Changes (2015)||new banks: 3, closed banks: 14|
|Consolidated Assets (2015)||547.31 bln EUR (-4.48%)|
|Pohjola Bank Plc||Nordea Bank Finland Plc|
|Aktia Bank Plc||Danske Bank Plc|
|List of Banks in Finland|
Finland joined the Euro Area on 1 January 1999.
According to Eurostat, nominal GDP of Finland in 2015 was 207.2 bln EUR.
Finland underperforms the European Union in terms of real GDP growth with the average annual differential coming to -0.7% over the past 10 years (2005 - 2015). In 2015 real GDP growth was 0.5% which was below the Euro Area average (1.6%) and below the European Union average (1.9%). Real GDP growth in 2016 - 2021 are IMF's estimates.
In 2015, nominal GDP per capita in Finland was 37 800 EUR.
Finland has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 7.1% over the past 10 years (2005 - 2015). GDP per capita at PPP in 2016 - 2021 are IMF's estimates.
According to Eurostat, inflation rate in Finland in 2015 expressed as annual percentages of average consumer prices was -0.2% which was below the Euro Area average (0.0%) and below the European Union average (0.0%). Inflation rates in 2016 - 2021 are IMF's estimates.
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Finland signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Finland signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Finland and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Finland signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
Finland has FATCA agreement with the U.S. in effect since 05 March 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Finland are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Finnish financial accounts hold in U.S. financial institutions will be reported to Finnish authorities.
FATCA and European countries
According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Finland is scored 5.5 out of maximum 7.0 and ranked 5th out of 138 analysed economies. Soundness of banks is scored 6.6 bringing Finland into the 1st place, trustworthiness and confidence of financial market is scored 5.8 (8th place).
Banking Industry Country Risk Assessment (BICRA) is a methodology designed by Standard&Poor's "to evaluate and compare global banking systems". A BICRA is scored on a scale from 1 to 10, ranging from the lowest-risk banking systems (group 1) to the highest-risk (group 10). The BICRA methodology has two main analytical components: "economic risk" and "industry risk". Each of the components is then further divided into 3 "factors" that result in an economic and industry risk score for each country.
Finland is included into group '2' with economic risk scored '1' and industry risk scored '3'.
|Economic resilience||very low|
|Credit risk in economy||very low|
|Government support assessment||supportive|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Finland are summarised in Table 2.
|Scheme Participants||all credit institutions operating in Finland, branches of Finnish banks abroad|
|Scheme Exemptions||branches of foreign banks (covered by their home countries)|
|Eligible Depositors||natural persons, legal entities|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||EUR|
Table 2. Deposit guarantee scheme in Finland.
Deposit Guarantee Schemes in Europe
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Euro) deposit ceiling for Finland is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Currently there are 285 credit institutions operating in Finland.
Recent structural changes (2013 - 2015) of the banking sector of Finland are summarised in Table 3.
|Number of Opened Banks||1||3||3|
|Number of Closed Banks||6||15||14|
Table 3. Recent structural changes in the banking sector of Finland.
All the credit institutions operating in Finland can be classified into several categories. Table 4 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||34|
The list of the most recently opened banks in Finland is provided in Table 5.
|Citibank Europe plc, sivuliike Suomessa (new)||November 2015|
|Collector Bank AB, filial i Finland (new)||July 2015|
|Nordea Bank AB (publ), Suomen sivuliike (new)||June 2015|
|BNP Paribas Fortis SA/NV, sivuliike Suomessa (new)||August 2014|
|Svea Ekonomi AB, Filial i Finland (new)||July 2014|
|TF Bank AB, filial Finland (new)||March 2014|
|Avida Finans AB, sivuliike Suomessa (new)||October 2013|
Table 5. The most recently opened banks in Finland.
There are 34 branches of foreign banks from 9 different countries in Finland. Table 6 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|