Consistent with its responsibilities for financial market development, the Bank also promotes interaction and cooperation between Finnish financial market participants, with a view to contributing to the design of effective and transparent technological solutions, standards and regulations, especially at international level.
The Bank of Finland contributes to the development of financial markets eg through participation in committees and working groups that prepare financial market legislation. Another channel for the Bank to influence legislation is the issuance of opinions on legislative proposals. The Bank also maintains formal and informal contacts with other authorities at different levels of competence. These discussions provide the Bank with an opportunity to state its own views on topical and envisaged projects for development and express its own opinions on developmental needs.
A concrete example is the implementation of readiness exercises aimed at developing capabilities for the management of potential crises affecting the financial system. Such exercises are organised in concert with other financial sector authorities and market participants. The purpose is to test and clarify the preparations of the financial markets for crisis situations.
Another example is related to the securities markets. The Bank of Finland follows the functioning of securities clearing and settlement systems and the progress made in development projects eg through regular oversight meetings with the representatives of the Finnish Central Securities Depository (APK). The Finnish APK and the Swedish central securities depository have formed a Nordic Central Securities Depository group, whose operation and development are monitored with close interest. The overseers of various countries need to ensure an adequate exchange of information and coordination of oversight. For this reason, the Bank of Finland and the Swedish central bank prepared a Memorandum of Understanding, (MoU) during the year 2005.