The Estonian financial system is closely related to those of the Nordic and Baltic countries and so work with them is highly important. The Nordic-Baltic partnership in financial stability focuses on two areas.

  • Multilateral cooperation between Nordic and Baltic central banks, ministries of finance and supervisory authorities concentrates on strengthening financial crisis management. The cooperation is based on a memorandum of understanding signed in 2010 and is run day to day in the Nordic-Baltic Stability Group (NBSG) set up in 2011.
  • Macroprudential supervision issues are discussed regularly at the Nordic-Baltic Macroprudential Forum (NBMF) set up in 2011, which brings together central bank governors and heads of supervisory authorities. Experts from Eesti Pank participate in the expert groups that do the preparatory work for the NBMF. There are also seminars for specialists from the central banks of the region where the results of analyses and assessments are shared and topical issues of financial sector policy are discussed.

Given the large market share of some Nordic banking groups in Estonia, bilateral partnerships with the central banks of the home countries of the parent banks are very important in the assessment of risks to financial stability and decisions on appropriate measures, in addition to multilateral cooperation.