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The Law On The Bank Of Finland

Original Language Title: Laki Suomen Pankista

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Law of the Bank of Finland

See the copyright notice Conditions of use .

In accordance with the decision of the Parliament:

Chapter 1

General provisions

ARTICLE 1
Station

Suomen Pankki is the Bank of Finland. It is an independent public body.

The Bank of Finland acts in the Treaty establishing the European Community (hereinafter: Treaty And the Statute of the European System of Central Banks and of the European Central Bank (hereinafter referred to as Statute , as part of the European System of Central Banks.

In carrying out the tasks of the European System of Central Banks, Suomen Pankki shall act in accordance with the guidelines and instructions of the European Central Bank.

ARTICLE 2
Objective

The primary objective of the Bank of Finland is to maintain price stability in accordance with the Treaty.

In accordance with the Treaty, the Bank of Finland shall support the achievement of other economic policy objectives without jeopardising the objective set out in paragraph 1.

ARTICLE 3
Tasks

The Bank of Finland has the task of contributing to the monetary policy defined by the Governing Council.

The Bank of Finland shall also:

(1) contribute to financial management and the issue of banknotes;

(2) contribute to the holding and management of foreign exchange reserves;

(3) contribute to the reliability and efficiency of the payment and other financial system and to contribute to its development;

(4) provide for the compilation and publication of the statistics necessary for its activities.

§ 4
Independence and cooperation with other authorities

In carrying out the tasks of the European System of Central Banks, the Bank of Finland or a member of its institution may not seek or receive any provisions relating to its activities other than the European Central Bank.

The Bank of Finland shall, where appropriate, be in cooperation with the Government and other authorities.

§ 5
Powers

The Bank of Finland may fulfil its tasks:

1) provide and take credit;

2) receive and make deposits;

(3) engage in securities, precious metals and foreign exchange transactions;

(4) the payment transaction and the settlement of payments;

(5) engage in other market operations in securities, money or foreign exchange;

(6) provide banks and other financial institutions and similar entities with provisions and instructions for handling money.

The Bank of Finland may own shares, shares and real estate to the extent that it is justified in order to carry out the tasks of the Bank or to organise activities.

ARTICLE 6
Prohibition of public funding

The Bank of Finland shall not grant credit to the institutions or bodies of the European Union, to the Member State of the European Union, to its regional, local or other authority or to any other public body.

In addition, the Bank of Finland shall not enter into debt certificates issued by entities referred to in paragraph 1.

Paragraphs 1 and 2 shall apply to credit institutions, except for undertakings which control the public entity referred to in paragraph 1. In central bank financing, the Bank of Finland shall treat publicly owned credit institutions in the same way as private credit institutions.

§ 7
Guarantees

The Bank of Finland shall have adequate collateral in its lending.

Paragraph 2 has been repealed by L 26.11.1999 1084 .

§ 8
Basic capital

The Bank of Finland has a fund and a reserve fund.

The reserve fund may be used to raise the outstanding amount or to cover the deficit as provided for in Article 21.

Chapter 2

Administration

§ 9
Institutions

The Bank of Finland is the Board of Governors and the Executive Board.

ARTICLE 10
The Banking Board

The Board of Governors consists of a bank councillor elected by nine representatives. The Authority shall elect a Chairperson and a Deputy Chairperson from among its members.

The Authority shall be obliged to resign if he is referred to as a member of the Council of State or appointed as a member of the Executive Board, or if he has taken an action which, according to the unanimous decision of the Board of Governors, is not suitable for treatment In addition to the activity of the Authority.

ARTICLE 11
Role of the Bank Board

The Board of Governors of the Bank of Finland is responsible for the management and operation of the Bank of Finland:

(1) to establish, on a proposal from the Executive Board, the criteria for the

(2) decide, on the basis of an opinion of the auditors, on the establishment of the Bank's profit and loss account and balance sheet;

(3) decide on a proposal from the Management Board on the outcome of the Bank's financial year;

(4) to report annually to the Parliament on the activities and management of the Bank and on the main issues dealt with by the Board of Governors;

(5) to report to the Parliament, where appropriate, on the conduct of monetary policy and other activities of the Bank.

The Board of Governors shall be responsible for the administration of Suomen Pankki:

(1) submit to the Council a proposal for the appointment of the President of the Executive Board; (19 DECEMBER 2008)

(2) decide on the criteria for the remuneration of the members of the Executive Board, the grounds for the freedom of office and the annual leave, as well as the appointment of a post for a period of more than one week;

(3) decide to issue a warning to the member of the Executive Board and to settle any other matters relating to the relationship between the members of the Executive Board;

(4) appoint the Directors on a proposal from the Executive Board;

(5) the Vice-President of the Executive Board;

(6) establish the Bank's pension and family pension rules and adopt, on a proposal from the Executive Board, provisions on the management of the Bank's pension liability;

(7) adopt, on a proposal from the Executive Board, provisions on the language skills required by the Bank's officials.

In addition, the Board of Governors shall:

(1) decide on proposals to be performed by the Parliament;

(2) decide on proposals to be made to the Council on matters of principle;

(3) establish the basis for the remuneration of the auditors appointed by the Parliament and their secretariats;

(4) establish a management rule as referred to in Article 15 (3) on a proposal from the Executive Board;

(5) provide compensation for the appointment of an official of the bank for a fixed period without any legal basis.

The Banking Board shall have the right to obtain the information necessary for the performance of its tasks as provided for in this Article.

ARTICLE 12
Decision-making by the Board

The Board of Governors shall have a quorum of at least six members. A decision is considered an opinion that most people have supported. In the event of a tie, the President shall have the casting vote.

The members of the Executive Board shall have the right to be present and to speak at the meeting of the Board of Governors.

ARTICLE 13
Executive Board

The Executive Board shall be composed of a Chairperson and a maximum of five other members. The President of the Republic appoints the President of the Executive Board for a seven-year term. The Board of Governors shall be appointed by the other members for a period of five years. As a qualification requirement for the post of a member of the Executive Board, a senior university degree and a high degree of familiarity with monetary or financial activities, as well as in practice, managerial skills and managerial experience. (19 DECEMBER 2008)

The President of the Board is the President of the Bank of Finland.

A member of the Executive Board may be appointed for a maximum period of three terms. However, the President of the Executive Board may be appointed for a term of two terms, although he has previously been a member of the Executive Board.

ARTICLE 14
Functions of the Executive Board

The Management Board shall ensure the performance of the tasks of the Bank of Finland and the management of the Bank, unless it is provided for by law to be part of the tasks of the Board of Governors or subject to a financial control law. (503/1993) -subject.

The Bank's activities must be organised in an efficient and economic way.

The Executive Board shall have the right to give more detailed provisions on the tasks and powers of the Bank's departments and the Bank.

The Executive Director and other members of the Executive Board shall be obliged to report regularly to the Board of Governors on the conduct of monetary policy and other activities of the Bank.

Financial control L 503/1993 Has been repealed by L 587/2003 , see L Financial supervision 878/2008 .

§ 15
Board decision-making

The Executive Board shall have a quorum of at least three members. A decision is considered an opinion that most people have supported. In the event of a tie, the President shall have the casting vote.

The independence and powers of the President of Suomen Pankki in the performance of his duties in the Governing Council of the European Central Bank shall be governed by the Treaty and the Statute.

More detailed provisions may be laid down in the management code for the conclusion and presentation of the Executive Board.

ARTICLE 16
Closure of the member of the Executive Board

The President of the Executive Board may dismiss the President and the Board of Governors of the Board of Governors only if he no longer fulfils the conditions required for the performance of his duties or if he has been guilty of serious misconduct. (19 DECEMBER 2008)

The decision referred to in paragraph 1 shall be subject to appeal by a member of the Executive Board other than the President, acting in accordance with the Supreme Administrative Court, where applicable, (18/06/1996) Provides. The right of appeal of the Chairman of the Executive Board shall be governed by the Statute.

§ 17
Member of the Executive Board

A member of the Executive Board shall not receive or maintain a branch unless the Board of Governors, upon application, shall grant him the authorisation. A secondary authorisation may also be granted for a limited period and limited. The secondary authorisation may be withdrawn when there is a reason.

When considering the granting of a sideline, account should be taken of the fact that a member of the Executive Board may not become aescapable as a result of an ancillary activity. Furthermore, the side action must not compromise the trust of a member of the Executive Board in the management of the European System of Central Banks or of the other functions of the European System of Central Banks or of any other function.

For the purposes of paragraphs 1 and 2, the branch shall mean the post and the unpaid and unpaid work and duties on which a member of the Executive Board is entitled to refuse, as well as the profession, the industry and the movement.

ARTICLE 18 (18.9.2015/1177)
Selection of auditors

The Board of Directors shall elect the Bank of Finland's accounts and accounts and the administration to audit five auditors and one alternate member.

At least two auditors and their alternates shall be KHT auditors or jHT auditors.

The auditors shall elect a Chairperson from among their number and shall take the secretary, who shall be the KHT auditor.

L to 17/7/2015 Article 18 will enter into force on 1 January 2016. The previous wording reads:

ARTICLE 18
Selection of auditors

The Board of Directors shall elect the Bank of Finland's accounts and accounts and the administration to audit five auditors and one alternate member.

At least two auditors and their alternates shall be auditors or certified by the Central Chamber Chamber of Commerce and Auditor General.

The auditors shall elect a Chairperson from among their number and shall hold a secretary, who shall be an auditor approved by the Central Chamber of Commerce.

Chapter 3

Financial statements, financial income, profit and auditing

§ 19
Financial statements

The Bank of Finland's financial year shall be the calendar year.

The financial statements, including the balance sheet, the profit and loss account and the accompanying information and the activity report, shall be drawn up by the end of February and shall be published by the end of April.

The financial statements should provide correct and sufficient information on the Bank's financial position and the formation of the result. The financial statements shall be drawn up and signed by the Executive Board.

The Bank's balance sheet shall be published monthly.

§ 20
Accounting

The Bank of Finland shall keep a good accounting practice in its books.

Reservations may be made in the financial statements if it is necessary to guarantee the real value of the Bank's funds or to offset fluctuations in exchange rate or securities market prices.

The financial statements may make the provisions necessary to cover the Bank's pension liabilities.

ARTICLE 21
Financial income and use of profit

The monetary income accruing in the framework of the European System of Central Banks in the field of monetary policy shall be calculated and distributed among the NCBs in accordance with the provisions of the Statute and the decisions taken by the Governing Council.

The profits of the Bank of Finland, after taking into account the accumulated financial income within the European System of Central Banks, shall be used for half of the reserve fund. The remaining part of the surplus is transferred to the needs of the State. The Board of Governors may decide to use the profit otherwise if it is justified by the size of the bank or the size of the reserve fund. The representation of the portion of the profit used for State needs shall be decided by the Parliament.

If the bank's accounts are loss-making, the loss must be covered by the reserve fund. In so far as the reserve fund is insufficient, the loss may not be covered until further notice. The profit of the next few years must be primarily used to cover uncovered losses.

§ 22
Financial audit

The annual accounts of the Bank of Finland shall be submitted annually by the auditors selected by the Board of Auditors by the end of March next year.

The audit shall be carried out in accordance with a good audit method.

All documents and information which they consider necessary for the purpose of carrying out the audit shall be made available to auditors.

The rights of auditors approved by the Council of the European Union to verify the accounts and accounts of the Bank of Finland and to obtain information on the Bank's activities are laid down in the Statute.

ARTICLE 23
Audit report

The auditors selected by the Parliament shall submit to the Board of Governors a written audit report containing opinions on compliance with the financial statements of the Board of Directors when drawing up the accounts, the profit and loss account and the balance sheet And on a proposal from the Executive Board for measures relating to the Bank's performance. In addition, the audit report shall include any reminders that may affect the establishment of the profit and loss account and balance sheet.

Chapter 4

Outstanding provisions

§ 24
Administrative procedure and official language

The Bank of Finland complies with the administrative law (998/1982) Dealing with administrative matters.

The official language of the Bank of Finland shall be valid for the official language of the bilingual service.

Administrative procedure L 598/1982 Has been repealed by the Administrative L 434/2003 . See. KieliL 423/2003 ARTICLE 12 .

ARTICLE 25
Payments

The Bank of Finland shall be entitled to levy charges. As regards the amount of the Bank's contribution to the Bank's activities, the amount of the fees charged for the tasks of the European System of Central Banks shall be taken into account, as appropriate, of the provisions of the State Payment Act (150/1992) Provides.

§ 26
Access to and obligation to provide information (88/2014/619)

Without prejudice to other non-disclosure provisions, the Bank of Finland shall have the right to receive from public authorities, credit and financial institutions and other financial markets all declarations, explanatory notes and other information necessary for the Bank's law In order to carry out the tasks.

The Bank of Finland shall, notwithstanding the provisions of confidentiality, provide information to the financial market surveillance authority, as well as non-statistical information, to any other authority empowered to obtain such information under the law. Data obtained for statistical purposes shall have the right to release to the other authority for statistical purposes if the authority is entitled under the law to obtain such information.

The right to receive and provide information on the tasks of the European System of Central Banks is also laid down in European Community legislation.

The Bank of Finland shall, without prejudice to the confidentiality of information provided for in any other law, notify without delay the law on financial supervision (878/2008) To the authorities referred to in paragraphs 1 and 3, if the Bank of Finland becomes aware of the establishment of the European Supervisory Authority (European Banking Authority) and amending Decision No 716 /2009/EC and Commission Decision 2009 /78/EC In accordance with Article 18 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council repealing Regulation (EU) No 1093/2010 of the European Parliament and of the Council. (88/2014/619)

§ 26a (19/04/2013)
Cooperation with the Ministry of Finance, Financial Supervisory and Financial Stability Agency

The Bank of Finland shall cooperate with the Ministry of Finance, the Financial Supervisory Authority and the Financial Stability Board (195/2014) With the Financial Stability Agency referred to in the law on the resolution of credit institutions and investment firms (19/04/2014) And the monitoring of decisions taken.

§ 27
Obligation to provide information to the committee

The Bank of Finland shall be obliged to provide the parliamentary committee with all the information necessary for the performance of its duties.

ARTICLE 28 (17/05/947)
Right to data for balance of payments statistics

For the Bank of Finland for balance of payments statistics, each person shall provide information on the following activities:

1) payments abroad and abroad;

2) receivables receivable from abroad, other assets abroad and liabilities abroad;

3) other actions that change or may change claims abroad or receivables abroad.

The Bank of Finland may impose an obligation on the Bank to provide the information referred to in paragraph 1. The penalty payment shall be condemned by the Bank of Finland.

The decision referred to in paragraph 2 shall be subject to appeal by the administrative court as provided for in the administrative law. The decision on the judgment of the administrative court on the judgment of the penalty payment may be appealed against in the manner laid down by the Law on Administrative Law. An appeal against any other decision of the administrative court may be lodged only if the Supreme Administrative Court grants an appeal. The decision may, in spite of the appeal, be implemented, unless the appeal authority decides otherwise.

L to 947/2015 Article 28 will enter into force on 1 January 2016. The previous wording reads:

ARTICLE 28
Right to data for balance of payments statistics

For the Bank of Finland for balance of payments statistics, each person shall provide information on the following activities:

1) payments abroad and abroad;

2) receivables receivable from abroad, other assets abroad and liabilities abroad;

3) other actions that change or may change claims abroad or receivables abroad.

The Bank of Finland may impose an obligation on the Bank to provide the information referred to in paragraph 1. The penalty payment shall be condemned by the Bank of Finland.

The decision referred to in paragraph 2 shall be subject to appeal to the Supreme Administrative Court as provided for in the Administrative Law. The decision may, in spite of the appeal, be implemented, unless the appeal authority decides otherwise.

§ 29
Use of speaking power and place of law

The Executive Board shall exercise the authority of Suomen Pankki before the Court of Justice of the European Communities and other courts and other authorities and entities.

In the case of disputes, the Bank of Finland is responsible for the Helsinki District Court.

ARTICLE 30 (17.11.2000/962)

§ 30 has been repealed by L 17.11.2000/962 .

Chapter 5

Entry into force

ARTICLE 31
Entry and transitional provisions

This Act shall enter into force when Finland participates in the territory of the single currency in accordance with Article 109l of the Treaty. This law repeals the Act of 24 July 1997 of the Bank of Finland (19/1997) With subsequent amendments, hereinafter referred to as Previous law . However, Articles 3, 36, 43 and 45 to 48 of the previous law remain valid until further notice.

However, Articles 4 and 15 to 17 of this Act shall, by way of derogation from paragraph 1, enter into force on 1 May 1998. Until they enter into force, Articles 5 and 17 to 19 of the earlier Act shall apply.

Before the law enters into force, measures may be taken to implement the law.

THEY 6/1998 , TaVM 3/1998, EV 20/1998

Entry into force and application of amending acts:

18.12.1998-1004:

This Act shall enter into force at the time provided for in Article 31 of the Bank of Finland Act.

THEY 259/1998 , TaVM 33/1998, EV 209/1998 Council Directive 98 /26/EC; OJ L 166, 11.6.1998, p. 45

26.11.1999-1084:

THEY 99/1999 , TaVM 10/1999, EV 56/1999, Council Directive 98 /26/EC; OJ L 166, 11.6.1998, p. 45

17.11.2000/962:

This Act shall enter into force on 1 December 2000.

THEY 57/2000 , LaVM 7/2000, EV 101/2000

19.12.2008/850:

This Act shall enter into force on 1 January 2009.

THEY 64/2008 , TaVM 23/2008, EV 178/2008

9.12.2011/1243:

This Act shall enter into force on 31 December 2011.

THEY 71/2011 , TaVM 4/2011, EV 30/2011, Directive 2010 /78/EU of the European Parliament and of the Council (32010L0078); OJ L 331, 15.12.2010, p. 120-161

8.8.2014/619:

This Act shall enter into force on 15 August 2014.

THEY 39/2014 , TaVM 6/2014, EV 62/2014

19 DECEMBER 2014/1203:

This Act shall enter into force on 1 January 2015.

THEY 175/2014 , TaVM 20/2014, EV 191/2014, Directive 2014 /59/EU of the European Parliament and of the Council (32014L0059); OJ L 173, 12.6.2014, p. 190

7.8.2015/947:

This Act shall enter into force on 1 January 2016.

In the case of appeals before the entry into force of this Act, the provisions in force at the time of entry into force of this Act shall apply.

THEY 230/2014 , LaVM 26/2014, EV 319/2014

18.09.2015/117:

This Act shall enter into force on 1 January 2016.

THEY 254/2014 , TaVM 34/2014, EV 371/2014