Supervisory Board of the Financial Supervision Authority confirmed the annual report
On Friday, 28 March 2008, the Supervisory Board of the Financial Supervision Authority approved the annual report for 2007. In 2007, the activities of the Financial Supervision Authority were focused on ensuring the stability of the Estonian financial sector in the changed economic environment, and on promoting consumer education.
On the global market, the liquidity and stability of capital markets have been replaced by instability and a significant rise in the cost of money. The cooling down of the economy sets new and stricter requirements to financial supervision to guarantee the stability and reliability of the Estonian financial sector in the changing environment.
Thus, in 2007, the Financial Supervision Authority paid more attention than so far on the analysis of the credit and liquidity risks of banks, and performed various strength analyses (stress tests) for both credit institutions and insurance companies. The goal of the Financial Supervision Authority was and is to secure that the market participants continue to keep their risk management level high and provide sufficient capital buffers.
"The work that the major banks have done by themselves at introducing a risk-sensitive framework for capital adequacy must definitely be emphasised as well. The role of the Financial Supervisory Authority here is to assess their work and quality of risk management. For such purpose, we have performed on-site inspections to a significantly greater extent than before," Raul Malmstein, Chairman of Board of the Financial Supervisory Authority, said.
Improvement of the quality of work for prevention of money laundering in banks, increase of the transparency of the market, and work in the field of educating consumers of financial services are continuously under scrutiny. The Financial Supervisory Authority is cooperating more closely with the supervisory authorities of neighbouring countries, mainly from Sweden. The capability and fast development of the Financial Supervisory Authority was highly appreciated by the mission of the IMF that ended at the beginning of 2008, which focused on analysing and assessing the financial stability framework in Estonia.
The revenue of the year 2007 from supervision fees for the Financial Supervisory Authority made up a total of mEEK 46.7, and expenditure also mEEK 46.7. The income and expenditure statement of the Financial Supervisory Authority was audited by AS PriceWaterhouseCoopers.