Credit institutions
Application for authorisation to pursue the business of a credit institution
A written application for authorisation is submitted to the Financial Supervisory Authority (FIN-FSA), with supporting documents attached. We recommend that the applicant entity contact the FIN-FSA in good time before submitting an application for authorisation.
Processing schedule for the application
An authorisation of a credit institution is granted by the ECB, based on an application submitted to the FIN-FSA. The FIN-FSA must submit a decision proposal on the authorisation of a credit institution to the ECB within 4 months of receipt of the application or, in the event of a defective application, as soon as the applicant has submitted the necessary documents and clarifications.
Approval of an authorisation depends on the application being accompanied by all the required clarifications. A decision on such an authorisation must always be announced, however, within 12 months of receipt of the application.
Entry into register of authorisations and announcement of authorisations granted
Once authorisation is granted to a credit institution, the FIN-FSA makes the appropriate declaration for entry into the trade register. It is important to note, however, that a company to be established may only commence operations once the entry has been completed in the trade register.
After granting an authorisation, the FIN-FSA releases information to the following: the Deposit Guarantee Fund (in the case of the authorisation of a deposit bank), the Investor Compensation Fund (authorisation to credit institutions offering investment services) and the EU Commission (credit institution authorisation).
Authorisation of credit institutions
There is no application form for the authorisation of a credit institution. The information to be appended to the authorisation application is specified in the Ministry of Finance Decree 697/2014 (available in Finnish and Swedish only).
Information to be appended to the authorisation application (in Finnish)
For more information on the prerequisites for authorisation, please see the FIN-FSA Regulations and guidelines 3/2016 Authorisations to pursue the business of a credit institution and notifications on Finnish credit institutions' operations abroad and foreign credit institutions' operations in Finland (available in Finnish and Swedish).
EEA credit institution
Branch
A foreign credit institution whose registered office is in an EEA state may establish a branch in Finland by notifying the supervisory authority of its home member state. The supervisory authority of the credit institution’s home member state will notify the Financial Supervisory Authority (FIN-FSA) of the credit institution’s right to carry out credit institution activity and will specify the services that the branch will provide. The FIN-FSA must respond to the credit institution within two months of receiving the notification.
The FIN-FSA supervises branch operations to a limited extent. Supervision of operational risks and solvency falls within the competence of the supervisory authority of the credit institution’s home member state. Branches accepting deposits are required to provide information on the deposit guarantee scheme and its organisation. The deposit guarantee of the branch is determined on the basis of the deposit guarantee scheme of the credit institution’s home member state.
If a branch fulfils the assessment criteria of a significant institution as specified by the Single Supervisory Mechanism, the branch is subject to supervision by the ECB.
Foreign credit institutions providing their services via a branch can be viewed in the FIN-FSA’s list of supervised entities (Credit market entities – Branches and representative offices).
Cross-border provision of services
A foreign credit institution whose registered office is in an EEA state may provide services in Finland by notifying the supervisory authority of its home member state, which will then notify the FIN-FSA.
Supervision of direct cross-border credit institution operations is mainly the responsibility of the supervisory authority of the credit institution’s home member state. However, the FIN-FSA supervises the customer policies of credit institutions providing services cross-border and their compliance with the provisions concerning customer protection.
Foreign credit institutions providing cross-border services in Finland can be viewed in the FIN-FSA’s list of notifications (Credit market)
Non-EEA credit institution
Branch
A non-EEA credit institution intending to carry out credit institution operations in Finland must apply to the FIN-FSA for an authorisation to establish a branch in Finland. The information to be included in a branch authorisation application is laid down in more detail in a decree of the Ministry of Finance.
Foreign credit institutions providing their services via a branch can be viewed in the FIN-FSA’s list of supervised entities (Credit market entities – Branches and representative offices).
Representative office
A non-EEA credit institution may open a representative office in Finland by notifying the FIN-FSA of this. The purpose of a representative office is to provide information on the credit institution and its services; a representative office may not be used to carry out credit institution activities, e.g. accept deposits or grant loans.
The representative offices of foreign credit institutions operating in Finland can be viewed in the FIN-FSA’s list of supervised entities (Credit market entities – Branches and representative offices).
Cross-border provision of services
A non-EEA credit institution may not provide services directly to Finland cross-border.
Operations in another EEA state
Branch
Establishment of a branch in another EEA state requires prior notification to the Financial Supervisory Authority (FIN-FSA). The notification must include the information in accordance with Annex I of European Commission Implementing Regulation 2022/193 (establishment of a branch or changes in branch particulars). The notification procedure is described in more detail below under the heading Submission of a notification.
The FIN-FSA must, within three months, process the matter and assess whether there is an impediment to the establishment of a branch. If the FIN-FSA has nothing to comment on the matter, it will notify the supervisory authority of the state where the services are to be provided (host member state). If a branch cannot be established, the FIN-FSA issues a decision which is subject to a right of repeal. The authority of the host member state must, within two months, process the FIN-FSA’s notification and respond to the party making the notification. The branch can commence its activities when it has received a response from the host member state or if no response has been received from the host member state within two months.
For credit institutions under the direct supervision of the European Central Bank (ECB), the notification is submitted to the FIN-FSA but is processed and the final decision made by the ECB.
Cross-border provision of services
A credit institution that wishes to provide its services directly on a cross-border basis without the establishment of a branch must notify the FIN-FSA of this. The notification must include the information in accordance with Annex V of European Commission Implementing Regulation 2022/193. The notification procedure is described in more detail below under the heading Submission of a notification.
The FIN-FSA will notify the supervisory authority of the future host member state about the provision of services within one month of receiving the credit institution’s notification. Activities can be commenced immediately after the FIN-FSA has made this notification.
For credit institutions under the direct supervision of the ECB, the notification is submitted to the FIN-FSA but is processed by the ECB.
The notification procedure is described in more detail below under the heading Submission of a notification.
Submission of a notification
New notifications, changes to notifications and withdrawals (cross-border services and branches) should be made via the ECB’s IMAS portal (significant and domestic banks):
Notifications are made in English.
In the case of a new, first notification, please contact AUT.Banks(at)finanssivalvonta.fi before sending the notification.
See also
Commission Implementing Regulation (EU) No 2022/193
Credit institutions providing their services from Finland to EEA states can be viewed in the FIN-FSA’s list of notifications.
Operations in a non-EEA state
Branch
Establishment of a branch in non-EEA state requires an authorisation granted by the Financial Supervisory Authority (FIN-FSA). The Ministry of Finance has issued a decree specifying the attachments that must be submitted to the FIN-FSA along with the application for authorisation. The decree can be found behind the link below. The FIN-FSA must make a decision on the authorisation within 12 months of receiving the application.
For credit institutions under the direct supervision of the European Central Bank (ECB), the notification is submitted to the FIN-FSA but is processed and the final decision made by the ECB.
Cross-border provision of services
If a credit institution intends to provide cross-border services in a non-EEA country without the establishment of a branch, it must make prior notification to the FIN-FSA of this in good time. With regard to services provided to non-EEA countries, the credit institution must ascertain before making the notification whether the cross-border provision of services is permitted in accordance with the legislation of the non-EEA country and the interpretations of the local supervisory authority.
Within three months of receiving a notification, the FIN-FSA may prohibit the activity if there are serious grounds for doing so.