Companies operating in financial markets are governed by a number of laws and official regulations. Besides the Bank of Finland, authorities participating in regulation and supervision in Finland are the Ministry of Finance, the Financial Supervisory Authority and the Ministry of Social Affairs and Health.
As Finland's monetary authority, the Bank of Finland also contributes to maintaining the reliability and efficiency of the national payment system and overall financial system and participates in their development. In addition, as a member of the European System of Central Banks (ESCB), the Bank of Finland is required to foster the smooth functioning of payment systems and contribute to the stability of the euro area financial system.
The Bank of Finland's activity in respect of issues concerning the financial system largely takes the form of exerting influence on other authorities, market participants and the general public. However, the Bank of Finland, as the national central bank, will play a leading role whenever operational principles for payment systems are agreed upon between banks. Other tools available to the central bank for exerting influence include research and analyses, publications, expression of opinions and various forms of cooperation.
The main competence at national level for the preparation of regulation concerning the financial system and for the implementation of legislative projects lies with the Ministry of Finance. In addition, the Ministry of Social Affairs and Health prepares legislation falling within the insurance sector. A number of legislative proposals are however prepared in working groups, in which the Bank of Finland is also represented.
Operating as an independent authority in connection with the Bank of Finland is the Financial Supervision Authority. Finanssivalvonta (FIVA), or the Financial Supervisory Authority (FIN-FSA), is the new authority for supervision of Finland’s financial and insurance sectors and, from 1 January 2009, responsible for most of the supervisory functions previously undertaken by the Financial Supervision Authority and the Insurance Supervisory Authority. The entities supervised by the new authority include banks, insurance and pension companies as well as other companies operating in the insurance sector, investment firms, fund management companies and the Helsinki Stock Exchange.