Estonian Financial Watchdog Keeps Close Eye on Banking Sector Amid European Integration

Finantsinspektsioon, Estonia’s financial supervision and crisis resolution authority, is working diligently to regulate banking institutions operating within its borders. With an autonomous budget and decision-making powers, the agency has been entrusted with overseeing banks, insurance companies, investment firms, and other financial entities that operate under licenses granted by Finantsinspektsioon.

Role in European Financial Integration

As a key player in the European Single Supervisory Mechanism (SSM), Finantsinspektsioon has been actively involved in monitoring the capital of major European banks and banking groups since November 2014. Additionally, it is part of the European Single Resolution Mechanism (SRM) and the Single Resolution Board, established in Europe in 2015.

Crisis Resolution Work

This development has given Finantsinspektsioon an added responsibility for crisis resolution work as a supervisory institution. The agency works closely with its counterparts from other countries to ensure that branches of banks, insurance companies, and investment funds operating in Estonia adhere to strict regulatory standards.

Supervision of Foreign-Based Entities

Under the supervision authority of their country of origin, these foreign-based entities must comply with Finantsinspektsioon’s regulations and guidelines. As such, the Estonian financial watchdog plays a crucial role in maintaining financial stability and preventing potential risks from emerging within the sector.

Key Responsibilities

• Overseeing banks, insurance companies, investment firms, and other financial entities operating under licenses granted by Finantsinspektsioon • Monitoring the capital of major European banks and banking groups as part of the European Single Supervisory Mechanism (SSM) • Working closely with counterparts from other countries to ensure adherence to strict regulatory standards • Maintaining financial stability and preventing potential risks from emerging within the sector