A sharp increase in geopolitical tensions and the resulting economic uncertainty characterised the operating environment of the Bank of Finland and the entire Eurosystem in 2023. Central banks curbed inflation by tightening their monetary policy. The effects of higher interest rates were felt in the financial and housing markets.

The Eurosystem, comprising the European Central Bank (ECB) and the national central banks of the euro area, is responsible for conducting monetary policy in the euro area. The Bank of Finland participates in the preparation of and decision-making on the Eurosystem’s single monetary policy and is responsible for its implementation in Finland.

The Bank of Finland’s tasks include maintaining the stability of the financial system in Finland. The objective is to identify in good time the vulnerabilities that threaten financial stability and to prevent banking and financial crises. The Bank of Finland’s economic forecasts and risk assessments make use of high-quality statistics prepared by the Bank.

The Bank of Finland’s tasks include the assessment of system risks, work to promote payment efficiency, and analysis that supports these tasks. In payment and settlement systems, the priorities for 2023 were national preparedness and the future of European payments.

One of the statutory tasks of the Bank of Finland is the holding and management of foreign reserves. After a difficult year in 2022, the situation in the financial markets was more favourable for investment returns in 2023.