Annual report

Geopolitical tensions continued to increase in 2024. Uncertainty also impacted the euro area economy, which displayed significantly weaker growth than the global economy. Inflationary pressures abated, allowing monetary policy to be eased. However, difficulties with real estate transactions persisted in Finland and were also reflected in the financial markets.

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. In 2024, the key objective of monetary policy decisions for the euro area was to stabilise inflation.

A key task of the Bank of Finland is to safeguard financial stability through actions such as identifying the risks related to housing markets, to household indebtedness and to the risk-bearing capacity of banks. In 2024, the Bank of Finland enhanced its statistics and its reporting collaboration to strengthen its knowledge base for assessing financial stability and for managing financial and climate risks.

Secure and efficient systems are a precondition for the reliable flow of money and payments in society. The Bank of Finland pursued this objective through a range of actions during 2024.

The Bank of Finland’s financial assets consist of foreign reserves, long-term investments and gold holdings. Managing foreign reserves is an integral part of the Bank of Finland’s statutory tasks. This helps in preparing for future uncertainties and crises. Management of the Bank of Finland’s financial assets is guided by the investment policy decided annually by the Bank’s Board. The investment policy covers fixed income investments, long-term investment and the principles of responsible investment.

Implementing monetary policy and safeguarding the stability and viability of the financial system are core central bank tasks. They involve financial risks, for which the Bank of Finland prepares by ensuring the strength of its balance sheet. At the end of 2024, the Bank of Finland’s total risks and risk buffers were near the year-end levels of the previous year.