Bank of Finland


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Bank of Finland

 

(Suomen Pankki), the central bank of Finland. An autonomous public institution, it is the country’s bank of issue and provides banking services to the government and other banks.

The Bank of Finland was established in 1811 as the Exchange, Loan, and Deposit Office. Since 1868 it has carried out its business under the guarantee and supervision of the Finnish Parliament. Since the early 20th century it has performed all the basic functions of a central bank. Thus, it issues currency, controls the total volume of credit in the country, keeps cash accounts of the treasury, holds the country’s gold and currency reserves, and maintains the rate of exchange of the markka at a stable level.

In contrast to most central banks, the Bank of Finland rediscounts bills of exchange and grants loans not only to banks but also, to a small extent, to other clients. It holds the capital of the Mortgage Bank (Teollissys Hypoteekki Pankki), which was founded in 1956 and grants credits for capital investment. The Bank of Finland has 12 branch offices in the country.

As of the end of 1976, the total balance of the bank amounted to 10.0 billion markkaa. The bank’s capital and reserves totaled 1.9 billion, and the issuance of currency represented 2.9 billion markkaa. Other totals, in billions of markkaa, were as follows: deposits and current accounts, 2.6; loans and discounting of bills of exchange, 6.1; and gold and foreign currency, 1.8.

References in periodicals archive ?
2006): "ATM Networks and Cash Usage", Bank of Finland Discussion Paper 21/2006.
The Bank of Finland expects the unemployment rate to decrease to 8.
The Bank of Finland was alerted and discovered 16 of its own notes without the safety device.
As part of the institutional reforms associated with ERM participation, a proposal for a new Act on the Bank of Finland has recently been presented to Parliament with the objective of aligning Finnish central banking legislation with Maastricht requirements.
I am also grateful to Jan Digranes, Norwegian Saving Banks Association, Arent Skjaeveland, Bank of Norway, Matti Viren, Bank of Finland, and Anders Moller Christensen, Bank of Denmark.
Liikanen, who is also the head of the Bank of Finland, said that the manner in which reforms would be phased in would balance any potential negative impact for bank lending.
The governor of the Bank of Finland Mr Erkki Liikanen delivered the opening presentation.
The Finnish central bank, Bank of Finland, reported on Wednesday (15 March) that Finland's current account amounted to a surplus of EUR130m in January 2006.
According to a 2001 paper published by the Bank of Finland, economists can see relationships between the structure of labor taxation and unemployment but the evidence is not definitive.
Given substantial progress in fiscal consolidation, these developments allowed the Bank of Finland to ease monetary policy considerably, the more so since the 2 per cent official target for "underlying" inflation - measured by the consumer price index excluding indirect taxes, subsidies and housing capital cost - has been significantly undershot.
The Bank of Finland, together with VATT Institute for Economic Research and the Ministry of Education and Culture, support the establishment of the unit and have expressed their preparedness to provide resources for its operation.
Bank of Finland deputy governor, Pentti Hakkarainen, said, 'The exceptional economic and financial market situation brings new, unforeseen risks in addition to the already identified vulnerabilities.

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