Finland's Financial Supervisory Authority (FIN-FSA) decided to leave its national macroprudential settings unchanged, keeping the systemic risk buffer (SyRB) for banks at 1.0%, other systemically important institution (O-SII) buffer rates at 0.5%–2.5%, and the countercyclical capital buffer (CCyB) at 0.0%. The maximum loan-to-collateral (LTC) ratio for housing loans also remains at its standard level. The housing loan cap stays at 95% for first-home loans and 90% for other new housing loans, with FIN-FSA citing no exceptional build-up in mortgage-related financial stability risks that would justify changing the cap. O-SII buffers were maintained at 2.5% for Nordea Bank Abp, 1.5% for OP Financial Group, and 0.5% for Municipality Finance Plc. For the CCyB, the private sector credit-to-GDP gap remained deeply negative at -16.9 percentage points in the first quarter of 2025, and supplementary indicators did not point to a material rise in cyclical risks. Separately, FIN-FSA approved full reciprocation of Norway’s updated SyRB requirement at 4.5% for Finnish banks operating in Norway, with the reciprocated requirement set to enter into force on 1 October 2025.
Finanssivalvonta 2025-06-27
Finland's Financial Supervisory Authority keeps bank capital buffers and housing loan cap unchanged and reciprocates Norway’s 4.5% systemic risk buffer
Finland's Financial Supervisory Authority (FIN-FSA) maintained its macroprudential settings, keeping the systemic risk buffer (SyRB) at 1.0%, other systemically important institution (O-SII) buffers at 0.5%–2.5%, and the countercyclical capital buffer (CCyB) at 0.0%. The housing loan cap remains at 95% for first-home loans and 90% for other new housing loans. FIN-FSA also approved full reciprocation of Norway’s updated SyRB requirement at 4.5% for Finnish banks operating in Norway, effective 1 October 2025.