The Riigikogu received an overview of the activities of the Financial Supervision Authority
Kerstin Pilt, Chairman of the Management Board of the Financial Supervision Authority, presented the Financial Supervision Authority's report for the previous year at today's plenary sitting of the Riigikogu.
“The financial sector must function in such a way that people and businesses can manage their finances with confidence. Its prerequisite is a reliable and transparent market, along with supervision capable of anticipating risks and responding to them in a timely manner,” Pilt said and pointed out the role of the Financial Supervision Authority.
According to Pilt, Estonia’s financial sector is strong, but geopolitical tensions, rapid technological development, and the ever-closer international interconnectedness of financial markets are bringing new risks. “Financial institutions must be prepared to manage cyber threats, technological disruptions, as well as international crises,” she said. “The goal is clear: even in difficult situations, the financial system must continue to function and public trust in banks must be maintained.”
Speaking about consumers of financial services, Pilt said that the digitalization of banking made services more convenient and customer identification easier but brought new risks. She pointed out that it was important to pay attention to responsible lending.
“Currently, creditworthiness is often assessed based on fragmented data, which can result in a person receiving a loan that exceeds their ability to repay,” Pilt said. “If a loan is given irresponsibly, the consequences can be severe for both the person themselves and their family members.” According to Pilt, the situation could be improved by a “positive credit register” which would consolidate information about a person’s financial obligations, such as a home loans, leases, consumer loans, and instalment payments.
Pilt stated that the register would concern sensitive data and therefore data protection issues would have to be thoroughly considered. “It is important who will manage this data and how it will be protected, and it is also important to ensure that the data will be accurate, up-to-date, and provide a comprehensive overview of people’s financial obligations,” Pilt noted. According to her, the register would be pointless if it contained only part of the data.
According to Pilt, it is also important that people who fall into financial difficulties or get into financial disputes have the opportunity to protect their rights. She pointed out that it was necessary to create the institution of a financial ombudsman, something the Financial Supervision Authority had been talking about for years. “This need has not disappeared over time – on the contrary, it has become even more relevant,” Pilt said. She pointed out that an independent financial ombudsman would mean that people would not necessarily have to go to court to protect their rights, but would be able to resolve disputes more simply, more quickly, and at lower cost.
Pilt added that the Financial Supervision Authority was developing a new four-year strategy, and the strategic priorities were scheduled to be published shortly.
During the debate, Mart Võrklaev took the floor on behalf of the Estonian Reform Party Group, Toomas Uibo on behalf of Estonia 200 Parliamentary Group, Riina Sikkut on behalf of the Social Democratic Party Group and Aivar Kokk on behalf of the Isamaa Parliamentary Group.
Photos: Erik Peinar / Chancellery of the Riigikogu)
Verbatim record of the sitting (in Estonian)
Video recording will be available to watch later on the Riigikogu YouTube channel.
Riigikogu Press Service
Merilin Kruuse
+372 631 6592, +372 510 6179
[email protected]
Questions: [email protected]
