Macroprudential instruments
| Macroprudential instruments | Legal background | Implementation | Frequency of Board’s decision making | Authorities consulted prior to taking a decision |
|
Countercyclical capital buffer (CCyB) |
Credit Institutions Act, chapter 10 sections 4, 5 and 6 |
In force |
Quarterly |
Ministry of Finance, Ministry of Social Affairs and Health, Bank of Finland and ECB |
| Maximum loan to value (LTV) ratio for housing loans (loan cap) |
Credit Institutions Act, chapter 15 section 11 |
In force |
Quarterly |
Ministry of Finance, Ministry of Social Affairs and Health, Bank of Finland |
| Articles 124 and 164 of Capital Requirements Regulation: risk weights for loans secured by mortgages on immovable property | CRR Articles 124 and 164 (or Article 458) |
In force |
Annually |
ECB |
|
Article 458 of the Capital Requirements Regulation: stricter national measures to address macroprudential or systemic risk |
CRR Article 458 |
In force |
In specific situations |
ECB |
|
Buffer requirement for global systemically important institutions (G-SII buffer) |
Credit Institutions Act, chapter 10 section 7 |
In force, but no G-SIIs in Finland |
Preconditions assessed annually |
ECB |
| Buffer requirement for other systemically important institutions (O-SII buffer) | Credit Institutions Act, chapter 10 section 8 | In force |
Preconditions assessed annually |
ECB |
| Systemic risk buffer requirement imposed on the basis of the structural characteristics of the financial system |
Credit Institutions Act, chapter 10 sections 4a-c |
In force
|
Preconditions assessed annually
|
ECB |
ECB’s opinion is required in all decisions on use of macroprudential instruments except those relating to LTV ratio
(grounds: Council Regulation of 15 October 2013 Article 5 and ECB Regulation of 16 April 2014 Articles 101–105).