Finland’s Ministry of Finance has launched a consultation on draft legislative changes intended to implement the European Union’s revised banking framework, which is based on the latest standards from the Basel Committee on Banking Supervision and also reflects changes needed in banking supervision and the management of sustainability risks. A working group has prepared the proposals as a draft government bill covering, among other areas, supervisory powers, credit-institution-related corporate restructurings, administrative sanctions, additional capital requirements, sustainability provisions, credit institution governance and fit-and-proper requirements for management, risk management related to crypto-assets, and the establishment in Finland of banks from outside the EU. The working group also proposes that Finland should not use an EU option allowing time-limited national rules affecting banks that use internal risk models. In parallel, the ministry has prepared additional amendments as part of official work, including changes affecting the independence of the Finnish Financial Supervisory Authority and the Bank of Finland and the administrative sanctions imposed by the Financial Supervisory Authority; Finance Finland filed a dissenting opinion in the working group report. Comments are requested by 16 July, and the working group’s mandate continues until the end of the year, when it will focus on a broader reform of national banking legislation and publish a further report.

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