Banks/Banking in Finland

The banks in England are in high numbers in comparison to the international average. There are high numbers of savings banks, banks in OP-Pohjola group and Local Cooperative Banks. In fact, by the year end 2007, 338 banks were operating in Finland, out of which 323 were domestic.

In addition to this, alliances and increased mergers are shaping Finnish banking sector that the finance market and banking have transformed into international. The Scandinavian banks operate actively in the acquisitions and cross border mergers. The best part is that the Finnish banks efficiency, capital adequacy and profitability are at healthy levels.

Bank of Finland is represented by the Central Bank of Finland. This is one of the top banks in Finland and the fourth oldest central bank. This bank is responsible for currency supply as well as foreign exchange, besides being a member of the central banks European System.

The Finnish Parliament governs the bank and the board is in charge for the bank administration, while the Parliamentary council for administration supervision and bank activities for statutory tasks. However, this bank is governed by the provision of act passed in 1998.

Subsidiary Banks

The central bank is the main bank and the banking in Finland includes many small numbers of commercial banks located in Helsinki. There are also several local branches featuring savings and cooperative banks, besides few state-owned banks. The network of cooperative and saving banks focused households that gave a solid deposit base.

The commercial banks could directly borrow from BOF that controlled majority corporate banking. However, the difference between the banking networks of both the banks in Finland was not apparent, yet the cooperative banks and savings banks formed individual central banks and enjoyed the commercial bank status.

Financial system

The financial system in Finland offers an extensive range of services adhering to the regulations. There are over 300 domestic banks; however the three groups that dominate the system are Nordea, Sampo Group and OP Bank group. The commercial banks support the Finnish corporations; especially KOP and UBF are national banks having extensive networks. Banking in Finland faces good foreign competition and nearly 60% assets are foreign owned.

The stock exchange is a part of the exchange network and the capital markets establish interest rates such that credit is obtainable to foreigners and nationals. The assets of the banks in Finland in 2007 amounted to 1.9 billion euro.