Themes of 2022
Elevated cyber risks emerged as a key theme in 2022; after Russia launched its invasion of Ukraine, the FIN-FSA reacted proactively to the deterioration of the cybersecurity situation in close cooperation with other authorities. In addition, the FIN-FSA improved its own preparedness. This topic is discussed in the article “Geopolitical situation accelerated preparation for cyber-attacks in the financial sector”.
Due to Russia’s war of aggression, energy prices also rose steeply in Europe. One of the FIN-FSA’s duties is to supervise the electricity derivatives market in cooperation with the Energy Authority and, in autumn 2022, the forceful rise in electricity futures prices posed a risk to the functioning of the markets. The situation and the actions taken are described in the article “The energy crisis shook the derivatives market”.
Crypto assets also remained a conspicuous phenomenon in 2022, as the virtual currency markets saw unprecedented uncertainty. In November, FTX, one of the largest virtual currency exchanges, fell into a downward spiral, ending up in bankruptcy. The events in 2022 highlighted the need for regulation in this area, too. This topic is discussed in the article “Year of uncertainty in the virtual currency markets”.
Climate change continued to be a key theme in 2022. The European Central Bank and national supervisors conducted climate stress tests on banks. The tests were completed in the summer, and towards the end of the year, the ECB set the end of 2024 as the deadline for banks to meet the regulatory expectations regarding climate and environmental risks. The banks’ climate stress tests are reviewed in the article “ECB’s climate stress testing and thematic review: banks must consider the impacts of climate change in their operations and risk management”.
The FIN-FSA monitors the actions of the entities under its supervision, intervenes in failures, and imposes sanctions where necessary. Where there are problems in the operability of governance, these are often shown as shortcomings in activities, including the way in which procedures, obligations and capital adequacy are taken care of. This topic is discussed in the article “Corporate governance safeguards the operations of the supervised entity and the security of clients’ money and insured benefits”.