|Financial Market Development|
|5.5 (max 7.0), 4th out of 138 countries|
|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).
Chart 1. Financial Market Development in Finland. Source: WEF.
Soundness of banks is scored 6.6 bringing Finland into the 1st place.
Chart 2. Soundness of Banks in Finland. Source: WEF.
Banks in Finland are mainly focused on the following areas:
|Number of Banks|
|Consolidated Assets (2018)|
|800.36 bln EUR (+91.10%)|
|Recent Changes (2018)|
|new banks: 2, closed banks: 4|
Currently there are 261 credit institutions operating in Finland.
In 2018 consolidated banking assets in Finland were 800.36 bln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Finland.
Recent structural changes (2013 - 2018) of the banking sector of Finland are summarised in Table 1.
|Number of Opened Banks||1||3||3||3||2||2|
|Number of Closed Banks||6||15||14||5||13||4|
Table 1. Recent structural changes in the banking sector of Finland.
The list of the most recently opened banks in Finland is provided in Table 2.
|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 (closed)||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 2. The most recently opened banks in Finland.
All the credit institutions operating in Finland can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||30|
There are 30 branches of foreign banks from 8 different countries in Finland. Table 4 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|
|Maximum Protected Amount|
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:
All these details about deposit guarantee scheme in Finland are summarised in Table 5.
Table 5. Deposit guarantee scheme in Finland.
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)|
Local currency (Euro) deposit ceiling for Finland is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
|Average Deposit Rate (Feb 2019, EUR)|
|0.21 % (Jan 2019: 0.28 %)|
Chart 4. Deposit Rates in Finland. Source: ECB.