Supervisory board approved the Financial Supervision Authoritys annual report
On 30 March 2007, the supervisory board of the Financial Supervision Authority approved the FSAs annual report for 2006. In 2006 the FSA focused on improving the efficiency of supervision and the education of consumers.
The high rate of credit expansion augments the credit and operating risks of the market participants. The FSAs aim was and is to make sure that market participants continue to apply high standards of risk management and have sufficient capital buffers under the conditions of quick economic growth. More complicated financial products, the intertwining of financial sectors, and toughening of competition in certain market segments required greater attention to be paid not only to capital supervision, but to the education and advising of consumers, and more broadly to developing supervision over financial services.
2006 was a year of stable development for the Estonian financial institutions and their customers. However, the external risks to the economy increased. Cross-border risks came to the attention of risk management. Estonias financial stability depends most directly on the harmonisation of supervision methods and efficient exchange of information with other EU member states. I am glad to say that the FSA's activities have been not only efficient, but also cost-efficient, and the supervisory board was able to decide to repay a profit of MEEK 4 to the market participants. In conclusion, I believe that the FSA performed its duties very well last year, said Aivar Sõerd, Chairman of the Supervisory Board of the FSA.
The FSAs income from supervision fees amounted to MEEK 43 in 2006 and its expenses were MEEK 40. The FSAs MEEK 4 profit for the financial year will be paid back to the market participants, according to the supervisory board's decision, in proportion to the supervision fees paid by them for 2006. The revenue and expenditure account of the FSA was audited by Deloitte & Touche.