Governance principles

Governance principles of the Savings Banks Amalgamation 

The activities of the Savings Banks Group comply with the provisions of current legislation, orders issued by the authorities, good banking practice regulations approved by the Federation of Finnish Financial Services, as well as these governance principles along with the Amalgamation’s other internal guidelines.

The governance principles are approved by the Board of Directors of the Amalgamation’s central institution and updated at least once a year or whenever there are changes in the operational environment, business model, regulations, and/or statutory requirements.

Governance principles of the Savings Banks Amalgamation

The governance principles define the structure and functions of the Savings Banks Amalgamation and its principal parts, the functions and responsibilities of the main governing bodies, and the internal controls and financial reporting. The governance principles help to ensure that the Amalgamation’s operations are open and transparent.

The activities of the Savings Banks Amalgamation and its central institution, the Savings Banks’ Union Coop, are regulated by European Union and national legislation, regulations and statutory requirements. The relevant national statutes are contained in the Act on Credit Institutions, the Act on the Amalgamation of Deposit Banks, the Savings Bank Act, the Insurance Companies Act, and the Cooperatives Act. In addition, the Amalgamation operates in accordance with good banking practice and the procedural regulations concerning personal data processing.

The reliable corporate governance in accordance with the governance principles comprises the Board and executive directors, relations between the shareholders and other stakeholder groups, the setting of targets, deciding on the means of attaining them, and monitoring performance. The implementation of reliable governance is ensured by a clear frame of reference, consistently and comprehensively documented guidelines, and clearly defined decision-making levels.

Corporate Governance

Savings Banks Amalgamation

The Savings Banks Amalgamation is a finance group formed by the Savings Banks and their central institution, the Savings Banks’ Union Coop, and their subsidiaries and associated institutions.

The ideological basis and starting point of the strategic goals of the Savings Banks Amalgamation is the promotion of thrift and the financial wellbeing of Savings Bank customers, close to the customer. This is the root of its values, basic service principles and quality customer work.

The Savings Banks Amalgamation is part of the Savings Banks Group, which comprises the Savings Banks Amalgamation and other institutions belonging to the Savings Banks Group. The scope of the Savings Banks Group differs from that of the Savings Banks Amalgamation in that the Savings Banks Group also includes institutions other than credit and financial institutions or service companies. The most significant of these are Sb Life Insurance Ltd, Sp-Koti and the Savings Banks’ Guarantee Fund.

The Savings Banks Amalgamation does not constitute a company in the sense defined in the Accounting Act or a consolidation group defined in the Act on Credit Institutions. However, the Amalgamation’s central institution must prepare the Amalgamation’s consolidated financial statements as defined in Section 9 of the Act on the Amalgamation of Deposit Banks.

Corporate governance (pdf)