Application of foreign macroprudential decisions in Finland (reciprocation)

Application of foreign macroprudential decisions to Finnish credit institutions usually requires that a corresponding macroprudential decision be taken in Finland. Foreign macroprudential decisions are also applied to Finnish credit institutions when these operate in the countries in question. Broad reciprocation of macroprudential decisions ensures achievement of the objectives of macroprudential decisions and non-discriminatory treatment of credit institutions.

Foreign macroprudential decisions can be made applicable to Finnish credit institutions by using instruments included in the Finnish macroprudential toolkit. A decision on reciprocation of foreign macroprudential decisions may concern macroprudential instruments adopted by both other EEA Member States and third countries.

As distinct from the above principle, decisions on countercyclical capital buffer requirements belong to directly applicable macroprudential tools. Decisions taken by foreign authorities on countercyclical capital buffer requirements are directly applicable to Finnish credit institutions, without any national decision in-so-far as the requirement is not higher than 2.5%. According to Finnish law, a countercyclical capital buffer requirement may not exceed 2.5%.




3 January 2017

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