The Bank of Finland aims to be one of the most efficient central banks in the EU. This requires continuous determined economic governance, HR planning and investment assessment.

Operating expenses and related objectives are monitored closely in order, among other things, to achieve the Bank's efficiency and sustainability targets. The Board evaluates implementation of the objectives on a quarterly basis.

In 2020, the Bank of Finland’s operating expenses totalled EUR 94.4 million (2019: EUR 92.0 million). Total income was EUR 20.5 million. Owing to the COVID-19 pandemic, the total for staff-related expenses, in particular, fell, as business trips in practice ceased completely.

Income was also increased by the sale of Turvalaakson Parkki Oy for EUR 4.1 million. The Bank of Finland also had other major sources of income, such as interest received, which do not result in any decrease in operating expenses in the budget, and so are not included in Table 1.

The Bank’s net operating expenses totalled EUR 73.9 million. More detailed information on expenses and the budget can be found in Table 1 and Table 2.

Investment expenditure totalled EUR 6.9 million.

In autumn 2020, the Bank’s budgets for the period 2021–2023 were drawn up and, of these, the Board ratified the budget for 2021.

The Bank has focused increased attention on the medium-term planning of investments. Investments are evaluated based on their costs, qualitative benefits and operative risks.

Pension fund

The pension fund’s operating expenses for 2020 totalled EUR 30.5 million (2019: EUR 30.2 million). Pensions paid constituted the largest cost item, amounting to EUR 28.4 million. Operating income (employment pension contributions and income from rent) amounted to EUR 14.1 million during the year.

The pension fund also received an additional contribution of EUR 10.0 million from the Bank.

For a more detailed breakdown of the outturn for 2020 and the budget for 2021, see Table 3.

The pension fund’s operations are published in its own annual report.

Financial Supervisory Authority

The Board of the Bank of Finland ratifies the budget for the Financial Supervisory Authority (FIN-FSA). The Financial Supervisory Authority’s operating expenses for 2020 totalled EUR 37.1 million (2019: EUR 34.8 million). Total income amounted to EUR 39.0 million, of which supervision and processing fees accounted for EUR 34.8 million, while the Bank of Finland’s contribution to funding was EUR 1.9 million.

The surplus for the financial year was EUR 1.9 million. The surplus will be taken into account in the following accounting period, when setting the supervisory and processing fees. Investment expenditure totalled EUR 0.5 million.

For a more detailed breakdown of the outturn for 2020 and the budget for 2021, see Table 4.

The Financial Supervisory Authority’s operations are presented in the authority’s own annual report.

Table 1.
Bank of Finland Outturn
2020
EUR m		 Budgeted
2021
EUR m
1. Operating expenses and income
EXPENSES
Staff expenses 33.9 36.1
Staff-related expenses 1.0 3.6
Other expenses 26.8 33.2
Banking service expenses 7.7 7.9
Depreciation 7.7 8.5
Total 77.1 89.3
Banknote acquisition costs 9.0 8.2
Pension fund contribution 8.3 8.3
Total operating expenses 94.4 105.8
INCOME
Banking service income 3.2 3.8
Real estate 5.4 5.4
Other income 5.7 0.1
Services to FIN-FSA 6.2 6.7
Total income 20.5 17.0
Net 73.9 88.8
Due to rounding, the totals do not necessarily tally.
Table 2.
Bank of Finland Outturn
2020
EUR m		 Budgeted
2021
EUR m
Investment
Real estate investment 2.7 5.5
Head office premises 1.1 2.0
Vantaa premises 1.5 3.2
Other premises 0.0 0.3
IT-equipment and software 3.4 5.3
Cash handling machines 0.0 0.0
Security equipment 0.7 1.6
Other 0.1 0.0
Total investment 6.9 12.4
Due to rounding, the totals do not necessarily tally.
Table 3.
Pension fund Outturn
2020
EUR m		 Budgeted
2021
EUR m
1. Operating expenses and income
EXPENSES
Staff expenses 0.0 0.0
Expenses for pension fund activities 0.6 0.9
Pension fund real estate expenses 0.5 0.5
Depreciation 0.9 1.0
Pensions paid 28.4 29.0
Total expenses 30.5 31.4
INCOME
Employment pension contributions 12.4 13.4
Internal rents 1.7 1.7
Pension fund contribution 10.0 10.0
Total income 24.1 25.1
Net 6.4 6.3
Due to rounding, the totals do not necessarily tally.
Table 4.
Financial Supervisory Authority Outturn
2020
EUR m		 Budgeted
2021
EUR m
1. Operating expenses and income
EXPENSES
Staff expenses 22.7 24.6
Staff-related expenses 0.4 1.0
Other expenses 4.9 6.3
Depreciation 1.2 1.0
Services from the Bank of Finland 6.2 6.7
Pension fund contribution 1.7 1.7
Total operating expenses 37.1 41.2
FUNDING OF OPERATIONS
Supervision fees 33.3 35.5
Processing fees 1.5 1.7
Bank of Finland contribution to funding 1.9 2.0
Surplus/deficit transferred from previous year 2.3 2.0
Total income 39.0 41.2
Surplus transferred to next year 1.9
Due to rounding, the totals do not necessarily tally.
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