Macroprudential instruments

Macroprudential instruments Legal background Implementation Frequency of Board’s decision making Authorities consulted prior to taking a decision

Countercyclical capital buffer (CCB)

Credit Institutions Act, chapter 10 sections 4-6 (CRD4)

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

​Entered into force on 1 July 2016

​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 (CRD4)

​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 (CRD4) ​Entered into force on 7 January 2016

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 4 and 6a (CRD4)

Entered into forced on 1 January 2018

 

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).