In recent years central banks have eased monetary policy by conducting large-scale asset purchases and offering banks credit on affordable terms. These measures promote price stability and facilitate economic growth and employment.

The Bank of Finland grants credit against collateral to Finnish banks. During the pandemic, credit operations have facilitated bank lending to businesses and households, and their uptake has been record-high.

In order for banks to obtain credit from the central bank, collateral is required. Collateral protects the central bank against risk. The ECB and Bank of Finland have eased their collateral requirements during the coronavirus pandemic.

The Bank of Finland manages about EUR 11 billion of financial assets. The Bank’s investment activities are guided by its central bank obligations and its ambitious principles of sustainable investing.

Recent changes in the implementation of monetary policy have strongly expanded the balance sheets of the Eurosystem central banks. At the same time, balance sheet risks have increased.

The Bank of Finland safeguards the operation of the Finnish payment system. Payment systems deliver transactions from one account to another, all the way from everyday retail payments to multi-billion euro transactions by banks.

Financial markets provide clues on the state of the economy and financing conditions. Crises emphasise the importance of market surveillance, as emerging problems in the economy and financial system are often first seen in markets.

Asset purchases have become an integral part of conducting monetary policy. The Bank of Finland implements the Eurosystem’s purchase programmes in Finland. Asset purchases lower interest rates in markets.

In Finland monetary policy is implemented by the Bank of Finland. Central banks have traditionally conducted monetary policy through interest rates. These days, they stimulate the economy by lending to banks at favourable terms and purchasing securities.

For already 17 years, the Bank of Finland has invited the simulator community to a two-day seminar in Helsinki in late summer.

China has become one of Russia’s main trading partners over the past ten years, leading to a significant diversification of Russia’s oil and gas export markets.

Over the past decade the tools for implementing monetary policy have become ever more diverse. These measures now include refinancing banks at favourable terms and large-scale asset purchases.

The need for sustainable finance has grown because of the urgency to mitigate climate change.

Consumer confidence has long been depressed by weak assessments of the outlook for the Finnish economy. Changes in consumer confidence can foreshadow a turning point in the economy and they therefore attract close attention.

The Finnish, Swedish and German economies weakened almost simultaneously in March. The latest indicators show signs of a pick-up, but uncertainty will slow the recovery.

Most Finnish companies have suffered a drop in turnover as a result of the corona crisis. Service industries are hard pressed. Cost adjustments and funding arrangements have saved jobs.