MGB’S RESPONSE TO THE FIN-FSA’S ZERO-RISK DECISION RELATING TO WELLBEING SERVICES COUNTIES AND JOINT COUNTY AUTHORITIES
21.1.2022
On 18 January 2022, the Financial Supervisory Authority (FIN-FSA) made an interpretation according to which the exposures to Finnish wellbeing services counties and joint county authorities can be treated similarly to exposures to the central government and shall be assigned a risk weight of 0 %.
The interpretation by the FIN-FSA is of great importance for the financial services of wellbeing services counties and joint county authorities. The zero-risk weight integrates wellbeing services counties and joint county authorities in the best possible way into the European Banking Union and safeguards the continuity of their access to money and capital markets when responsibility for organising health and social services is transferred from joint municipal authorities to wellbeing services counties. In this way, financial management in the wellbeing services counties will remain administratively light, as is currently the case in the joint municipal authorities.
In connection with the health and social services reform, the MGB Board of Directors has highlighted and promoted the procedure by which the continuity of the financial services is ensured when moving from joint municipal authorities to wellbeing services counties. MGB’s objective has now been attained with the interpretation by the FIN-FSA.
Financial Supervisory Authority’s Supervision release (available in Finnish):
For further information, please contact:
MUNICIPAL GUARANTEE BOARD
Heikki Niemeläinen
CEO
+358 40 5898348
