Financial market developments and innovations are based on new requirements that surface in the markets. The markets, however, may fail to function entirely, especially in cases of emergency, or their operation may lead to undesirable consequences. From this perspective, central banks need to participate in developing financial markets and guiding such development, in cooperation with other authorities; similarly, however, they need to improve their surveillance and analysis tools for financial markets.
It should be remembered that development work itself is set to change the operating environment and risks in all their manifestations. The Bank of Finland, in its role of maintaining one of the key payment systems, assumes an important and concrete task of development. These pages provide an overview of some key development projects that are underway at the Bank of Finland.