Financial asset management and social responsibility
5.3 New strategy focused on stability and influence
Stable prices, secure payment systems and a reliable financial system foster economic growth, employment and the general wellbeing of people in Finland.
The Bank of Finland’s vision is to be known as a forward-looking and effective central bank and a constructive and influential member of the Eurosystem.
The 2018 round of strategy discussions identified four groups of key challenges for the Bank of Finland in the immediate years ahead:
Monetary policy normalisation following the financial crisis presents a challenge for the entire Eurosystem. Monetary policy strategy and tools must be developed in a situation where the operating environment challenges existing monetary policy models and macroeconomic theories.
Ensuring financial stability is increasingly important. Finland’s financial markets have strong international linkages and the level of household debt has risen. There was considerable growth in the size of the Finnish banking sector in 2018. The role of financial market actors outside the banking sector presents a challenge to the adequacy of the macroprudential framework.
The digital revolution in payments and banking operations will test the competence of the authorities and their ability to steer and supervise developments in payment systems. Rapid technological change is transforming the field of fintech and banks’ business models. In addition, the use of cash as a means of payment is declining and cyber risks are growing.
Influencing economic policy by introducing facts and research results into the domestic policy debate to support political decision-making.
Areas of strategic focus in the immediate future
The Board selected six key strategic projects for the Bank of Finland.
Evaluating alternative monetary policy scenarios, and research cooperation
Identifying policy solutions needed to ensure financial stability
Developing Finland’s payment systems
Implementation of national contingency planning for payments traffic during disturbances under normal conditions and during states of emergency
Contributing to domestic economic policy
Fostering financial literacy in Finland
In its contributions to domestic economic policy the Bank of Finland emphasises fiscal sustainability, labour market functionality, productivity development in the economy and the objectives for further development of EMU.
Board overhauls organisation
The Bank of Finland Board updated the organisational structure of the Bank in line with the areas of strategic focus.
Policy functions relating to payments and development of payment systems were placed in a department of their own. Data management and IT functions were also brought together in a single department. This will help take forward the process of digitalisation and aid exploitation of different forms of data resources.
The new departmental structure came into effect on 1 January 2019.