6.4 Bank of Finland’s international cooperation in 2022

Economic and financial issues within the scope of central bank policies are cross-border in nature, so measures to address them call for close international cooperation. After the need to hold meetings online during the COVID-19 pandemic, an increasing number of meetings in 2022 were held face-to-face.

The Eurosystem is the Bank of Finland’s most important network for cooperation.

The Bank of Finland also participates in the work of many international and European institutions and committees and cooperates with the national central banks of other countries.

The Bank of Finland is represented in a number of bodies of the European Central Bank (ECB) and the EU and in other international forums. A list of these positions can be found on the Bank of Finland’s website.

Bank of Finland responsible for Finland’s relations with International Monetary Fund

The International Monetary Fund (IMF) is an organisation of 190 member countries that works to foster international cooperation, open and rules-based foreign trade, sustainable economic growth and financial stability.

The Governor of the Bank of Finland, Olli Rehn, is Finland’s representative on the highest governing body of the IMF, the Board of Governors.

The Bank of Finland also influences the activities of the IMF via its role in the IMF’s Nordic-Baltic Constituency (NBC), which has a joint representative on the IMF Executive Board. Mika Pösö’s three-year term in this position expired at the end of 2022.

The countries of the NBC agree policy positions on topics discussed by the IMF Executive Board. In 2020–2022, the lead role in preparing the policy positions was held by Finland. This preparatory work was carried out in collaboration between the Bank of Finland and the Ministry of Finance.

The activities of the NBC are guided by the Nordic-Baltic Monetary and Financial Committee (NBMFC). The Deputy Governor of the Bank of Finland, Marja Nykänen, is a member of the Committee.

IMF meetings are important forums for international cooperation

After holding meetings online during the COVID-19 pandemic, the IMF’s Spring and Annual Meetings in Washington DC were once again held in-person, and the Bank of Finland was among the attendees.

The meetings of the IMF’s International Monetary and Financial Committee (IMFC) were also held in conjunction with the Spring and Annual Meetings, which are important forums for international economic cooperation.

The IMFC discussed the global economic outlook, international financial stability and topical economic policy challenges. Russia’s invasion of Ukraine was widely condemned.

Kristalina Georgieva, Managing Director of the IMF, emphasised in her contributions at the Spring and Annual Meetings the need for decisive policy action and unity among the international community. She also discussed the uncertainty of the economic outlook, the increasingly shock-prone world and the complexity of the policy landscape. Tackling global challenges, such as the food crisis, the energy crisis and climate change, will rely on international cooperation.

Bank of Finland participates in work of EU institutions and committees

The Bank of Finland is a member of the EU’s Economic and Financial Committee (EFC). The EFC has been set up to promote economic policy coordination among EU Member States and to participate in the preparatory work for the EU’s Economic and Financial Affairs Council, commonly known as the Ecofin Council.

In 2022, the EFC convened 13 times in its full composition, i.e. with national central banks.

At these meetings, the EFC discussed, among other things, the economic and financial consequences of Russia’s war in Ukraine, energy pricing, the energy derivatives markets, sanctions on Russia, financing packages for Ukraine and the economic and financial impact of climate change.

The EFC also prepared joint positions for international meetings.

The Bank of Finland also participates in the work of many EU committees and EU bodies promoting the stability of the banking and the financial system. The European Systemic Risk Board (ESRB) is among the most important of these. The Governor of the Bank of Finland is a member of the General Board of the ESRB.

In 2022, the ESRB’s General Board discussed, among other things, the impact of Russia’s war in Ukraine on the financial markets and financial stability risks, and reviewed, for example, the vulnerabilities and resilience of the EU financial system. It also discussed the macroprudential policies and measures of the EU countries.

Bank for International Settlements promotes central bank cooperation and dialogue

The Governor of the Bank of Finland participates in the regular meetings of the governors of the member central banks of the Bank for International Settlements (BIS).

These meetings discuss developments and current issues relating to the global economy and the financial markets, and matters of interest to central banks.

Bank of Finland cooperates with other Nordic central banks

The Bank of Finland maintains close contacts with the central banks of the other Nordic countries. Nordic central bank governors convene annually to discuss topical issues.

In 2022, the governors convened in November in Oslo. They discussed, among other things, inflation-related topics and the security of payment systems.

The deputy governors, in turn, convened in April in Reykjavik and in December in Oslo.

Cooperation between Nordic central bank experts is also furthered regularly in various meetings covering a wide array of different departmental activities.