The Finnish Financial Supervisory Authority (FIN-FSA) published its review of the financial position and risks of supervised entities, concluding that Finland’s financial sector remained strongly capitalised and solvent in 2025 despite heightened geopolitical and market uncertainty. While supporting EU proposals to simplify the regulatory framework to improve efficiency and clarity, FIN-FSA cautioned that any easing must not come at the expense of resilience or financial stability; it also noted that payment fraud continued to grow in 2025 even as the cyber incident situation stayed calm over the winter. In banking, capital ratios edged up, with the Common Equity Tier 1 ratio at 18.3% (12/2024: 18.2%) and the total capital ratio at 22.2% (12/2024: 22.1%), remaining above the European average; profitability stayed good despite weaker net interest income, non-performing loans remained moderate, liquidity was stable, and public deposits reached a record high. The employee pension sector’s solvency capital increased on a 7.7% investment return, strengthening the solvency ratio while the solvency position stayed at 1.6; equity allocation rose to 56.3%. In insurance, life sector solvency declined to 212.1% (12/2024: 222.4%) as the solvency capital requirement increased more than own funds, while non-life solvency rose to 256.5% (12/2024: 254.4%); fund assets grew to EUR 226 billion (12/2024: EUR 205 billion), management companies’ financial result increased to EUR 307 million (2024: EUR 178 million), and investment firms continued to meet capital and liquidity requirements with a financial result of EUR 289 million (2024: EUR 242 million).

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