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Economy and Banking Sector of Finland

Financial Market Development

Financial Market Development
5.5 (max 7.0), 4th out of 138 countries
Banks' Soundness
6.6 (max 7.0), 1st out of 138 countries

According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Finland is scored 5.5 out of maximum 7.0 and ranked 4th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 5.8 (7th place).

Financial Market Development in Finland.

Chart 1. Financial Market Development in Finland. Source: WEF.


Soundness of banks is scored 6.6 bringing Finland into the 1st place.

Soundness of Banks in Finland.

Chart 2. Soundness of Banks in Finland. Source: WEF.

Further Information

Deposit Guarantee Scheme

Maximum Protected Amount
100,000 EUR

Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Finland are summarised in Table 1.

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
  • citizens of Finland
  • residents of Finland
  • foreign citizens
  • foreign residents
legal entities
  • registered in Finland
  • registered abroad
  • companies
  • associations
  • foundations
Non-Eligible Depositors
public authorities
municipalities and joint municipal authorities
credit institutions
investment firms
management companies
alternative investment fund managers (AIFMs)
financial institutions
insurance companies
insurance associations
pension foundations
insurance funds
Covered Accounts
deposit products offered by deposit banks, including
  • demand deposit accounts
  • fixed-term accounts
  • home savings incentive accounts
  • long-term savings accounts
  • investment-linked deposits
Non-Covered Accounts
investment accounts
money-market investments
Covered Currencies
all currencies, namely
  • EUR (Euro)
  • foreign currencies
Maximum Protected Amount
100,000 EUR
Temporary High Balance
unlimited
Paid In Currency
EUR

Table 1. Deposit guarantee scheme in Finland.

Further Information

Country Ceiling for Deposits

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)
Aaa (prime)
Foreign Currency
Aaa (prime)

Local currency (Euro) deposit ceiling for Finland is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).

Deposit Rates

Average Deposit Rate (Feb 2019, EUR)
0.21 %  (Jan 2019: 0.28 %)
In February 2019, an agreed annualised deposit rate in local currency (Euro) of new contracts with agreed maturity up to 1 year between credit institutions and households was 0.21% which was below the Euro Area average (0.32%).
Deposit Rates in Finland.

Chart 3. Deposit Rates in Finland. Source: ECB.

Further Information

Banking Supervision

Suomen Pankki

Banking Sector Structure

Number of Banks
264
Consolidated Assets (2017)
418.81 bln EUR  (-22.06%)
Recent Changes (2018)
new banks: 2, closed banks: 4

Currently there are 264 credit institutions operating in Finland.

In 2017 consolidated banking assets in Finland were 418.81 bln EUR. The consolidated banking assets' evolution is shown at Chart 4 below.

Consolidated banking assets in Finland.

Chart 4. Consolidated banking assets in Finland.

Recent structural changes (2013 - 2018) of the banking sector of Finland are summarised in Table 2.

201320142015201620172018
Number of Opened Banks133322
Number of Closed Banks615145134

Table 2. Recent structural changes in the banking sector of Finland.

The list of the most recently opened banks in Finland is provided in Table 3.

NameStart Date
J.P. Morgan Bank Luxembourg S.A.- Helsingin sivuliike (new)July 2018
Nordea Bank Abp (new)June 2018
BNP Paribas SA, sivuliike Suomessa (new)December 2017
National Westminster Bank Plc, filial i Finland (new)June 2017
GCC Capital AB , filial i Finland (new)November 2016
Nordea Hypoteksbank Abp (new)October 2016
Eurocard AB, filial i Finland (closed)September 2016
Citibank Europe plc, sivuliike Suomessa (new)November 2015
Collector Bank AB, filial i Finland (new)July 2015
Nordea Bank AB (publ), Suomen sivuliike (closed)June 2015
 

Table 3. The most recently opened banks in Finland.

All the credit institutions operating in Finland can be classified into several categories. Table 4 summarises the number of banks in each category.

CategoryNumber of Banks
Banks15
Branches of foreign banks31
Central banks1
Cooperative banks194
Savings banks23

Table 4. Number of banks by category in Finland.

There are 31 branches of foreign banks from 8 different countries in Finland. Table 5 shows the number of branches grouped by the country of origin.

Country of OriginNumber of Branches
 Sweden21
 United Kingdom2
 France2
 Norway2
 Denmark1
 Ireland1
 Luxembourg1
 Estonia1

Table 5. Number of branches of foreign banks in Finland grouped by country of origin.