The FIN-FSA Board’s new macroprudential strategy emphasises the risk resilience of the financial system more strongly than before

The FIN-FSA's macroprudential strategy from 2022 has been updated to correspond to changes in the environment and regulations. The macroprudential strategy supports the Board's work as the national macroprudential policy decision-maker and helps stakeholders to better understand and assess the decisions.

The primary goal of macroprudential policy is to reduce the probability and adverse effects of financial crises and other severe disruptions to the financial system on the real economy and thereby promote long-term economic growth. The aim is to prevent and limit the increase in systemic risks and vulnerabilities, to strengthen the resilience of the financial system to systemic risks, and to support, where necessary, financial intermediation in the event of disruptions to the economy and the financial system. The strategy defines the objectives, the authorities’ responsibilities, and measures for achieving the primary goal of macroprudential policy.

The updated macroprudential strategy includes the following changes:

• the primary goal of the macroprudential strategy emphasises the risk resilience of the financial system more strongly than before,
• the emphasis on risk resilience is also reflected in the new formulations of the macroprudential intermediate objectives,
• the intermediate objective 2 will be supported by three new operational policy objectives,
• the examples of the application of macroprudential instruments have been clarified as a result of regulatory changes, and
• corresponding changes have been made to the summary table at the end of the strategy.

The FIN-FSA Board evaluates annually the success of the policy it practises, the effectiveness of the available tools, and whether the macroprudential strategy is up to date.

For further information, please contact

Marja Nykänen, Chair of the FIN-FSA Board, tel. +358 9 183 2007

Appendix

Macroprudential strategy of the Board of the Financial Supervisory Authority