Notes on the balance sheet

Assets 

1. Gold and gold receivables 

The Bank of Finland’s holdings of gold total 1,406,634 troy ounces (1 troy ounce = 31.103 g). In the annual accounts, gold is valued at market price. At the beginning of 1999 the Bank of Finland – and the other national central banks (NCBs) participating in the Eurosystem – transferred about 20% of its gold holdings to the ECB.

2. Claims on non-euro area residents denominated in foreign currency 

The item consists of claims on non-euro area residents denominated in foreign currency and included in the Bank of Finland’s foreign reserves, and receivables from the International Monetary Fund (IMF). 

2.1 Receivables from the International Monetary Fund (IMF)

Finland’s quota in the IMF is SDR 2,410.6 million. The reserve tranche is the share of the Bank of Finland’s quota that has been paid to the IMF in foreign currency. The remaining portion has been paid to the IMF in Finnish markka and in euro. The IMF has lent this portion back to the Bank of Finland. The net effect of the Finnish markka and euro quota on the Bank of Finland’s balance sheet is zero, as the above-mentioned receivables and the liability are recorded under the same balance sheet item. 

The Bank of Finland’s holdings of special drawing rights (SDRs) are equivalent to EUR 4,117.4 million. Special drawing rights are reserve assets created and allocated by the IMF to its member countries. They are used in currency transactions as normal currency units. The amount of the sub-item changes on the basis of currency transactions between the member countries. It is also affected by interest earned and paid as well as the remuneration on the Bank’s claims in the IMF. 

In total, the Bank of Finland’s receivables from the IMF amount to EUR 5,065.6 million. 

2.2 Balances with banks and security investments, external loans and other external assets 

This item consists of foreign currency-denominated security and fund investments as well as external loans and other external assets denominated in foreign currency.

3. Claims on euro area residents denominated in foreign currency

This item consists of foreign currency-denominated deposits and securities as well as other claims on euro area residents denominated in foreign currency.

4. Claims on non-euro area residents denominated in euro 

This item comprises holdings of euro-denominated securities issued by non-euro area residents.

5. Lending to euro area credit institutions related to monetary policy operations denominated in euro

This item consists of interest-bearing credit to Finnish credit institutions, and the amount recorded is determined by the credit institutions’ liquidity needs. 

The total Eurosystem holding of monetary policy assets amounts to EUR 36.7 billion, of which the Bank of Finland holds EUR 0 million. In accordance with Article 32.4 of the ESCB Statute, losses from monetary policy operations, if they were to materialise, are shared in full by the Eurosystem NCBs, in proportion to the prevailing ECB capital key shares. Losses can only materialise if both, the counterparty fails and the recovery of funds received from the resolution of the collateral provided by the counterparty is not sufficient. For specific collateral, which can be accepted by NCBs at their own discretion, risk sharing has been excluded by the Governing Council of the ECB.

5. 1 Main refinancing operations 

Main refinancing operations (MROs) are liquidity providing reverse transactions which are executed with a weekly frequency and a maturity of one week, on the basis of standard tenders. They are conducted as fixed rate tender procedures. These operations play a key role in achieving the aims of steering interest rates, managing market liquidity and signalling the monetary policy stance. 

5.2 Longer-term refinancing operations 

These operations (LTROs) aim to provide counterparties with additional longer-term refinancing. These operations were conducted at fixed rate with allotment of the total amount bid. 

5.3 Fine-tuning reverse operations

Fine-tuning reverse operations aim to regulate the market liquidity situation and steer interest rates, particularly to smooth the effects on interest rates caused by unexpected market fluctuations. Owing to their nature, they are executed on an ad-hoc basis. 

5.4 Structural reverse operations 

These are reverse open-market transactions through standard tenders to enable the Eurosystem to adjust its structural liquidity position vis-à-vis the financial sector. 

5. 5 Marginal lending facility 

Marginal lending facilities may be used by counterparties to obtain overnight liquidity from NCBs at a pre-specified interest rate against eligible assets. 

5.6 Credits related to margin calls 

This item refers to cash paid to counterparties in those instances where the market value of the collateral exceeds an established trigger point implying an excess of collateral with respect to outstanding monetary policy operations. 

6. Other claims on euro area credit institutions denominated in euro 

This item consists of euro-denominated deposits and balances with euro area credit institutions.

On 17 May 2017, the Governing Council decided to publish the text of the Emergency Liquidity Assistance (ELA) agreement with the aim of further increasing transparency regarding ELA. This publication replaces the ELA procedures document that has been available on the ECB website since October 2013. For the text of the press release, click on: http://www.ecb.europa.eu/press/pr/date/2017/html/ecb.pr170619.en.html. 

7. Securities of euro area residents denominated in euro 

7.1 Securities held for monetary policy purposes 

As at 31 December 2025 this item consisted of debt securities acquired by the Bank of Finland under the Securities Markets Programme (SMP), the third covered bond purchase programme (CBPP3), the public sector purchase programme (PSPP), the corporate sector purchase programme (CSPP) and the pandemic emergency purchase programme (PEPP).

In 2025 the asset purchase programme (APP)Further details on the asset purchase programme can be found on the ECB’s website. and PEPPFurther details on the pandemic emergence purchase programme can be found on the ECB’s website. portfolios continued to decline at a measured and predictable pace, as the Eurosystem no longer reinvested the principal payments from maturing securities. 

The debt securities purchased by the Bank of Finland under these programmes are accounted for at amortised cost, subject to impairment (see ‘Valuation and amortisation of securities’ in ‘Accounting policies’). The amortised cost of the debt securities held by the Bank of Finland, and their market valueMarket values are indicative and calculated on the basis of market quotes. When market quotes are not available, market prices are estimated using internal Eurosystem models. (which is not recorded in the balance sheet or in the profit and loss account, and is provided for comparison purposes only), are as follows:

The Governing Council assesses on a regular basis the financial risks associated with the securities held under these programmes. In this context, impairment tests are conducted on an annual basis using year-end data and are approved by the Governing Council. In these tests, impairment indicators are assessed separately for each programme. In cases where impairment indicators are observed, further analysis is performed to confirm that the cash flows of the underlying securities have not been affected by an impairment event. 

In accordance with Article 32.4 of the ESCB Statute, losses from holdings of securities purchased under the SMP, CBPP3 and CSPP programmes, from holdings of securities of supranational organisations purchased under the PSPP, and from holdings of covered bonds (PEPP-COV) and corporate sector securities (PEPP-CORP) purchased under the PEPP, if they were to materialise, are shared in full by the Eurosystem NCBs, in proportion to their prevailing ECB capital key shares. 

Based on the results of this year’s impairment tests, no losses have been recorded by the Bank of Finland for the securities held in its monetary policy portfolios in 2025. 

The following table shows, for each programme, the total Eurosystem NCB's holdings and the share held on the Bank of Finland’s balance sheet.

7.2 Other securities 

This item comprises euro-denominated securities and investments in fund shares, both issued by euro area residents.

8. Intra-Eurosystem claims 

8.1 Participating interest in ECB 

As per the Article 28 of the ESCB Statute, the ESCB national central banks are the sole subscribers to the capital of the ECB. Pursuant to Article 29 of the Statute of the ESCB, the weightings assigned to the NCBs in the key for subscription of the ECB’s capital are determined according to the shares of the respective Member States in the total population and gross domestic product of the EU, in equal measure. These weights are adjusted every five years and whenever there is a change in the number of NCBs of EU Member States. The most recent such adjustment took effect on 1 January 2024. 

For the Bank of Finland this balance sheet item includes (i) the paid-up share in the ECB’s subscribed capital, (ii) the net amount paid by the Bank of Finland due to the increase in its share in the ECB’s equity value resulting from all previous ECB capital key adjustments, and (iii) the contributions in accordance with Article 48.2 of the Statute of the ESCB. 

The capital key is applied to the ECB’s subscribed capital of EUR 10,825 million to determine the share of subscribed capital for each NCB. The euro area NCBs have fully paid up their share of subscribed capital, while the non-euro area NCBs have paid up 3.75% of their subscribed capital as a contribution to the operational costs of the ECB. The following table shows the capital key, subscribed capital and paid-up capital of the ECB.

8.2 Claims equivalent to the transfer of foreign reserves 

These represent the Bank of Finland’s claims arising from the transfer of foreign reserve assets to the ECB, when the Bank joined the Eurosystem. In line with Article 30.2 of the Statute of the ESCB, these contributions are fixed in proportion to NCBs’ share in the subscribed capital of the ECB. Since 1 January 2025 the remuneration of these claims is calculated on a daily basis at the latest available interest rate applied to the deposit facility offered by the Eurosystem, adjusted to reflect a zero return on the gold component. Until that date, such remuneration was calculated at the latest available interest rate used by the Eurosystem in its tenders for main refinancing operations, also adjusted to reflect a zero return on the gold component. 

As at 31 December 2025, the Bank of Finland’s claims equivalent to the transfer of foreign reserves totalled EUR 736.8 million. 

8.3 Claims related to TARGET/Liabilities related to TARGET 

This item consists of the TARGET balance of the Bank of Finland vis-à-vis the ECB (see ‘Intra-ESCB balances/intra-Eurosystem balances’ in ‘Accounting policies’). As at 31 December 2025, the item amounted to EUR 11,726.7 million (2024: EUR 20,896.8 million). The decrease in the TARGET claim resulted mainly from a decline in deposits with the Bank of Finland. Deposits declined because the maturing of securities held for monetary policy purposes reduced excess liquidity in the Eurosystem, which commercial banks may deposit with the central bank. 

Since January 2025 the remuneration of this claim/liability is calculated on a daily basis at the latest available interest rate applied to the deposit facility offered by the Eurosystem. Until that date, such remuneration was calculated at the latest available interest rate used by the Eurosystem in its tenders for main refinancing operations. 

8.4 Net claims related to the allocation of euro banknotes within the Eurosystem/Net liabilities related to the allocation of euro banknotes within the Eurosystem

This item comprises the claim arising from the adjustment of the amount of the Bank of Finland's banknotes in accordance with the ECB capital key, and the liability related to the 8% share of banknotes allocated to the ECB. For both the claim and the liability, the counterpart entry is recorded under the balance sheet liability item ʻBanknotes in circulation’.According to the accounting regime chosen by the Eurosystem on the issue of euro banknotes, a share of 8% of the total value of the euro banknotes in circulation is allocated to the ECB on a monthly basis. The remaining 92% of the value of the euro banknotes in circulation are allocated to the NCBs also on a monthly basis, whereby each NCB shows in its balance sheet a share of the euro banknotes issued corresponding to its paid-up share in the ECB’s capital. The difference between the value of the euro banknotes allocated to the NCB according to the aforementioned accounting regime, and the value of euro banknotes put into circulation, is recorded in ‘Net claims related to the allocation of euro banknotes within the Eurosystem’ or ‘Net liabilities related to the allocation of euro banknotes within the Eurosystem’.

At the end of 2025, the balance sheet item totalled EUR 6,879.7 million (EUR 6,950.7 million in 2024). The change in comparison to 2024 was due to an increase of 3.0% in banknotes put into circulation by the Bank of Finland in 2025, as well as a rise of 2.0% in banknotes in circulation in the Eurosystem as a whole. Since 1 January 2025 the remuneration of these claims/liabilities is calculated on a daily basis at the latest available interest rate applied to the deposit facility offered by the Eurosystem. Until that date, such remuneration was calculated at the latest available interest rate used by the Eurosystem in its tenders for main refinancing operations. 

8.5 Other claims within the Eurosystem (net)/Other liabilities within the Eurosystem (net)

The balance of EUR 111.4 million as at 31 December 2025 represents the sum of three components: (1) the balances held with euro area central banks through correspondent accounts; (2) the position vis-à-vis the ECB in respect of the pooling and allocation of monetary income within the Eurosystem pending settlement; and (3) the Bank of Finland’s position vis-à-vis the ECB in respect of any amounts receivable or refundable, including the amount due to the Bank of Finland in respect of the ECB’s interim profit distribution. 

Regarding the first component, the Bank of Finland had no claims in respect of correspondent accounts at year-end. 

The second component, i.e. the position vis-à-vis the ECB in respect of the annual pooling and allocation of monetary income within the Eurosystem national central banks, had a credit balance of EUR 111.4 million at year-end (see ‘Net result of pooling monetary income’ in ‘Notes on the profit and loss account’). 

With respect to 2025, the Governing Council, in view of the ECB’s overall financial result for the year, decided to retain the full amount of income derived from banknotes in circulation, as well as income earned on securities purchased under the SMP, APP and PEPP (see section 7. ‘Interim profit distribution by the ECB’ in ‘Accounting policies’). Therefore, no related amounts were due at the end of 2025. 

9. Other assets 

This item comprises the Bank of Finland’s holdings of euro coins, fixed assets and investment assets (shares and other equity). The item also includes valuation results of off-balance sheet items, accruals and other receivables as well as the pension fund’s assets.

Liabilities 

1. Banknotes in circulation 

This item consists of the Bank of Finland’s share, in accordance with the ECB’s capital key and adjusted for the share allocated to the ECB, of the total amount of euro banknotes in circulation. 

During 2025, the total value of euro banknotes in circulation increased by 2.0%. According to the allocation key, the Bank of Finland had euro banknotes in circulation worth EUR 27,062.4 million at the end of the year compared with EUR 26,541.2 million at the end of 2024. The value of the euro banknotes actually issued by the Bank of Finland in 2025 increased by 3.0% from EUR 19,590.5 million to EUR 20,182.7 million. As this was less than the allocated amount, the difference of EUR 6,879.7 million (compared to EUR 6,950.7 million in 2024) is shown under asset sub-item ‘Net claims related to the allocation of euro banknotes within the Eurosystem’.

2. Liabilities to euro area credit institutions related to monetary policy operations denominated in euro

2.1 Current accounts (covering the minimum reserve system) 

Current accounts contain the credit balances of the transaction accounts of credit institutions that are required to hold minimum reserves, excluding funds of credit institutions that are not freely disposable, and accounts of credit institutions exempt from minimum reserve requirements, which are disclosed separately under liability item 3 ‘Other liabilities to euro area credit institutions denominated in euro’. Following a Governing Council decision on 27 July 2023, minimum reserve balances are remunerated at zero percent since 20 September 2023. 

2.2 Deposit facility 

The deposit facility refers to overnight deposits placed by banks that access the Eurosystem's liquidity absorbing standing facility at the pre-specified rate. 

2.3 Fixed-term deposits 

Fixed-term deposits are fine-tuning liquidity absorbing operations that take the form of deposits. 

2.4 Fine-tuning reverse operations 

Fine-tuning reverse operations are used to offset high liquidity imbalances. 

2.5 Deposits related to margin calls 

This item refers to deposits made by counterparties in those instances where the market value of the collateral pledged falls short of an established trigger point. 

3. Other liabilities to euro area credit institutions denominated in euro 

As at 31 December 2025, this item amounted to EUR 5.1 million and consisted of collateral related to foreign exchange swaps and forwards. 

4. Liabilities to other euro area residents denominated in euro 

This item consists of euro-denominated liabilities to the public sector, EUR 4,500.0 million, and to financial institutions not subject to minimum reserve requirements, EUR 281.5 million. 

5. Liabilities to non-euro area residents denominated in euro 

This item consists of balances of international organisations and of non-euro area banks and financial institutions with the Bank of Finland, totalling EUR 3,083.7 million. 

6. Liabilities to euro area residents denominated in foreign currency 

As at 31 December 2025, the Bank of Finland had no liabilities to euro area residents denominated in foreign currency. 

7. Liabilities to non-euro area residents denominated in foreign currency 

As at 31 December 2025, the Bank of Finland had no liabilities to non-euro area residents denominated in foreign currency. 

8. Counterpart of special drawing rights allocated by the IMF 

This item is the counterpart entry of special drawing rights (SDRs, cf. item on the assets side). Originally, the holdings of special drawing rights on the assets side of the balance sheet and their counterpart on the liabilities side were equal. As a result of SDR transactions, the Bank of Finland’s claims related to special drawing rights exceeded the counterpart entry on the liabilities side at the end of 2025. The counterpart entry on the liabilities side totals SDR 3,500.0 million. In the balance sheet, the item is presented in euro and valued at the exchange rate prevailing on 31 December 2025, amounting to EUR 4,079.5 million. 

9. Intra-Eurosystem liabilities (net) 

Intra-Eurosystem liabilities and claims are broken down in the notes on the balance sheet under the asset item ‘Intra-Eurosystem claims’. 

10. Other liabilities 

This item comprises accruals, accounts payable and sundry liabilities. Accruals include e.g. year-end accrual items recognised in connection with the preparation of the financial statements and accrued interest payable on repurchase agreements. The sub-item ‘Sundry’ includes e.g. liabilities related to VAT settlements and withholding taxes.

11. Revaluation accounts 

This item consists of unrealised valuation gains arising from the market valuation of foreign currency-denominated items and securities. The item also includes revaluation increases for land and buildings and other valuation differences arising from changes in accounting policies in 1999.

12. Provisions

12.1 Risk provisions 

Under section 20 of the Act on the Bank of Finland, provisions can be made in the annual accounts, if they are necessary for safeguarding the real value of the Bank’s funds or for smoothing out variations in profit and loss arising from changes in exchange rates or market values of securities. At the end of 2025, risk provisions totalled EUR 2,842.7 million. These provisions consist of a provision against real value loss and a foreign exchange rate and price difference provision. 

12.2 Other provisions 

The item ‘Other provisions’ includes the Bank of Finland’s pension provision, which has been established to cover the Bank’s pension liability. This liability totals EUR 576.5 million and is covered at 105.2%, i.e. by assets totalling EUR 606.4 million. The change in the pension provision during the financial year comprises a release of EUR -0.4 million from the revaluation reserve and the profit of the pension fund, EUR 4.8 million. At the end of 2025, real estate assets totalling EUR 6.2 million had been earmarked as coverage for the pension provision (see ‘Other claims’ in the notes on the balance sheet). No specific assets have been earmarked to cover the remaining portion of the pension provision, EUR 598.7 million. The remaining portion is managed as part of the Bank’s financial assets. 

13. Capital and reserves 

This item consists of the Bank of Finland’s primary capital and reserve fund. In accordance with section 21 of the Act on the Bank of Finland, the loss shall be covered from the reserve fund, if the annual accounts of the Bank show a financial loss. If the reserve fund is insufficient to cover part of the loss, the uncovered part may be left temporarily uncovered. Any profits in subsequent years shall be used first to cover such uncovered losses.

14. Profit for the year 

Profit for the financial year 2025 totalled EUR 0.00. 

Off-balance sheet commitments

As at 31 December 2025, EUR 5,1 million of the market value of FX swaps was related to hedging against currency risk. 

In accordance with the Governing Council’s decisions, the Bank of Finland has made securities held for monetary policy purposes available for lending. The Bank has also made securities in its own investment portfolio available for lending. Depending on the collateral received, securities lending operations are recorded in (i) off-balance sheet accounts, when conducted against securities collateral; or (ii) on-balance-sheet accounts, when conducted against cash that remains uninvested at the end of the year (see liability items 3. ‘Other liabilities to euro area credit institutions denominated in euro’ and 5. ‘Liabilities to non-euro area residents denominated in euro’) in the notes on the balance sheet. Such securities lending operations with a value of EUR 13.4 million (2024: EUR 30.7 million) were outstanding as at 31 December 2025.