The Finnish Financial Supervisory Authority (FIN-FSA) has set out its support for clarifying and simplifying financial regulation where careful impact assessments show that changes would not weaken firms’ solvency or risk resilience, or threaten financial stability. It views competitiveness and stability as mutually reinforcing and supports efforts to remove overlaps, reduce administrative burdens and develop deeper European capital markets to improve access to investment and financing. FIN-FSA said any proposed secondary objective requiring it to promote competition, financing and sustainable economic growth must be clearly aligned with its statutory supervisory role and responsibilities for market confidence and financial stability. It also called for monitoring the combined effects of Finland’s recent housing finance changes, including the increase in the housing loan cap for non-first-home buyers to 95% and a longer maximum repayment period. Although household indebtedness has declined, it remains relatively high by European standards, creating a risk that greater flexibility could build longer-term financial vulnerabilities.
2026-09-28Finanssivalvonta
Finnish Financial Supervisory Authority backs targeted regulatory simplification while preserving solvency and financial stability
The Finnish Financial Supervisory Authority supports targeted simplification of financial regulation where it does not weaken solvency, risk resilience or financial stability. It wants any new competitiveness objective clearly aligned with its supervisory mandate and calls for close monitoring of recent housing finance easing given Finland’s still-high household indebtedness.