The Financial Supervision Authority's 2024 Report
Session: 15th Riigikogu, 6th plenary sitting
Date: 2025-09-11 13:06
Total Speeches: 111
Membership: 15
Agenda Duration: 2h 0m
AI Summaries: 111/111 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
At the plenary session of the Riigikogu (Estonian Parliament), the 2024 annual report of the Financial Supervisory Authority (FI) was discussed, presented by Chairman of the Management Board Kilvar Kessler. Kessler provided a comprehensive overview of FI's activities and development over the past 12 years, emphasizing the inspection's role as an apolitical, independent, and professional financial supervisor. He highlighted the strengthening of the Estonian financial market, noting the relocation of the headquarters of large regional banks (such as SEB and Luminor) to Tallinn, which confirms confidence in the Estonian business environment. Kessler also addressed four important topics: corporate mergers, over-regulation of the legal framework (over 700 legal acts), the launch of new supervisory areas (crypto assets, credit providers, crisis resolution), and the maturation and streamlining of FI (including the takeover of Guarantee Fund functions).
During the question round and debates, several topical issues were discussed, including the Enefit Green insider information case, regarding which FI has filed a criminal complaint. Significant attention was paid to consumer protection and the non-bank credit market. Kessler supported the creation of a financial ombudsman to offer consumers a fast and inexpensive option for dispute resolution. The regulation of credit and loan associations was also discussed, where FI's position is to implement bank-like supervision over associations with a loan portfolio exceeding 50 million euros. Representatives of the parliamentary groups acknowledged FI's work in ensuring financial stability but emphasized the need to limit the social harm caused by quick loans and to accelerate the creation of a positive credit register and the launch of the financial ombudsman institution.
Decisions Made 1
Decisions were not made
Aseesimees Arvo Aller
AI Summary
Today's agenda includes the 2024 report of the Financial Supervision Authority. Before the speaker begins, the procedure will be explained, according to which Kilvar Kessler will give a presentation lasting up to 25 minutes. Following this, each member of the Riigikogu may ask one oral question, and the discussions will be concluded with the participation of representatives from the parliamentary groups.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller outlined the agenda for the discussion of the Financial Supervision Authority's 2024 annual report, explaining that the presentation by Kilvar Kessler, Chairman of the Management Board, would be followed by questions from Riigikogu members and debates among the factions. He then gave the floor to Mr. Kessler to begin his address.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler greeted the Speaker of the Riigikogu and the members of the Riigikogu.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller greets the Chairman.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board and head of the Financial Supervision Authority (FI), gave the Riigikogu (Estonian Parliament) a comprehensive overview of the institution's 12 years of operation. He emphasized the FI's professionalism, independence, and effectiveness in resolving crises and preventing money laundering, which has helped Estonia achieve the status of a trustworthy banking center (for instance, by bringing the headquarters of SEB and Luminor to Tallinn). He highlighted the launch of new supervisory areas, including crypto and crisis resolution, but criticized the European Union's over-regulation. He called for future efforts to simplify rules, better manage technological risks, and maximize Tallinn's potential as a banking center so that the Baltics would start to be treated as a home market in Scandinavia.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board and Head of the Financial Supervisory Authority (FI), provided a comprehensive overview of the institution's 12 years of operation, emphasizing FI's role as a professional and effective supervisory body recognized at the European level. He detailed the successful tackling of various crises (including the prevention of money laundering and geopolitical risks), the launch of new supervisory areas (such as crypto and crowdfunding), and the strengthening of Tallinn’s position as a banking hub. Looking ahead, the speaker stressed the need to simplify the European Union’s overregulation, deepen the management of risks associated with digitalization, and leverage the potential of the Baltics as a Scandinavian home market.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler said that over the past 12 years, the Financial Supervisory Authority (Finantsinspektsioon) has grown into a trustworthy, professional, and independent financial supervision institution that ensures the stability and competitiveness of the Estonian financial sector, expands its areas of supervision and crisis resolution, and deals with mitigating digital risks, while simultaneously seeing great potential in Tallinn and the Baltics as a banking center.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller thanked the presenter for the report and invited Anastassia Kovalenko-Kõlvart to ask her questions.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart stated that the repurchase of Enefit Green into state ownership raised suspicions based on insider information, which have been confirmed and forwarded to the Central Criminal Police and the Prosecutor's Office. She added that this is an extremely rare case in Estonia, and the discussion on the matter is planned to continue at the special anti-corruption commission session on Monday.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart thanks the server and points out the unusual case regarding the buyback of Enefit Green into state ownership, where insider information leakage was suspected because trading volumes exceeded typical levels before the news was made public. She emphasizes that the suspicion has been confirmed, and the case has been forwarded to the Central Criminal Police and the Prosecutor's Office.
Aseesimees Arvo Aller
AI Summary
The speech emphasizes that this is your time.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, emphasized the critical importance of a fair and flawlessly functioning capital market for the Estonian economy, explaining that the terms of takeover bids constitute price-sensitive inside information, the misuse of which is a crime. He also confirmed that the Financial Supervision Authority has filed a criminal complaint to ensure market confidence and information symmetry, although the details of the ongoing proceedings cannot be disclosed due to the presumption of innocence.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler stressed that the Estonian capital market must operate honestly, and information symmetry must apply to everyone. Misuse of inside information is a crime. Furthermore, in the event of takeovers, the offer must be made to all shareholders on equal terms, and a premium—that is, a higher price—encourages selling, which in turn ensures the trustworthy operation of the market and fosters economic development.
Aseesimees Arvo Aller
AI Summary
Annely Akkermann is invited to the stage to begin her address.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann expresses thanks for the fascinating presentation and for the work involved in building up the Financial Supervisory Authority over more than 20 years. She sheds light on its development and poses more philosophical questions concerning the greatest challenge, the greatest success, and the lingering, unsettling aspect of it. Furthermore, she addresses the proposal by entrepreneurs and the banking association to merge the Financial Supervisory Authority with the Bank of Estonia, questioning whether two fundamentally different organizations could actually unite.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann thanked the speaker for the overview detailing the long-term establishment and development of the Financial Supervisory Authority. She then posed two philosophical questions: first, looking back, what was the greatest challenge or success; and second, what is the speaker's view on the proposal put forward by businesses to merge the Financial Supervisory Authority with the Bank of Estonia.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority (FSA) and its long-time head, recalled the most critical moments of his 21 years of work, highlighting four main challenges: the creation of the FSA through the merger of three different supervisory bodies; managing the 2008 bank run and liquidity crisis; successful integration with the European Central Bank’s banking supervision; and the proactive fight against illicit funds, which helped prevent major money laundering scandals and the termination of correspondent relations. Finally, he explained that the different financial supervision models (integrated with or separate from the central bank) are due to historical reasons and the need to avoid conflicts with monetary policy.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler outlines four of the most challenging moments: establishing the FI (Financial Supervision Authority) from scratch by merging three separate institutions; mitigating the risks associated with the 2008 financial crisis and bank runs; integrating into the 2014 European banking supervision system and the ECB; and finally, preparedness during the COVID-19 era, alongside Estonia’s robust digitalization efforts in financial supervision and anti-money laundering.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller moderated the discussion, asking participants to stick strictly to the questions. He acknowledged the previous answer as very substantive and then gave the floor to the next speaker, Urmas Kruuse.
Aseesimees Arvo Aller
AI Summary
This clarifies that the discussion has remained within the scope of the questions, notes that it was very substantive, offers thanks, and announces that Urmas Kruuse is next.
Urmas Kruuse
Profiling Eesti Reformierakonna fraktsioonAI Summary
Urmas Kruuse is raising the issue of the necessity of regulating savings and loan associations to ensure better protection for depositors' money. He is investigating whether the current community-based model has objectively outlived its usefulness, or if the legislature should instead focus on the universal principle that deposits must be protected regardless of the circumstances.
Urmas Kruuse
Profiling Eesti Reformierakonna fraktsioonAI Summary
The rapporteur raises the need for better protection of depositors' money and the regulation of credit unions. They also ask whether the outdated model should be replaced or if the principle that depositors are always protected should be maintained, and whether there are other impacts that members of the Riigikogu might not yet perceive.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervisory Authority, stated that in Estonia, credit unions should be regulated and supervised like banks and should be subject to the Guarantee Fund's guarantee if their loan portfolio exceeds approximately 50 million euros. However, smaller associations could be offered better protection mechanisms and rights for members to participate in management, without public financial supervision.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervisory Authority (FSA), emphasizes that although credit unions (CUs) are common in Europe, their loan portfolio in Estonia is many times smaller than that of banks, and they are not currently subject to FSA supervision. The FSA's position is that CUs whose loan portfolio exceeds 50 million euros should be under financial supervision and regulated like banks to protect depositors' life savings, as the insolvency of a business of this scale would have a broad societal impact. Conversely, for smaller associations with strong community control, enhanced management and control rights for members would suffice without the need for expensive public supervision.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller invited Pipi-Liis Siemann to the tribune.
Pipi-Liis Siemann
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He thanks the speaker and emphasizes the importance of raising awareness among residents, especially youth, the elderly, and debt counselors. He then asks how the development of consumer risk awareness can be assessed based on consumer complaints, including those related to crowdfunding services, and whether the situation is improving.
Pipi-Liis Siemann
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Pipi-Liis Siemann commended the presenter for raising public awareness, but expressed concern about the noticeable increase in consumer complaints, particularly those related to crowdfunding services, asking how this reflects consumers' general risk awareness and financial literacy, and whether any progress has been observed in this field.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler stressed that Estonia should consider establishing a financial ombudsman, which would resolve consumer complaints affordably as a separate mechanism and provide valuable insight to the financial supervisory authority, thereby reducing the need for lengthy and expensive litigation.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, whose area of responsibility includes the supervision of financial services, explained that financial supervision does not deal with the resolution of individual disputes, but rather uses patterns of consumer complaints to shape its supervision plans. He further emphasized that since the current court-based dispute resolution system is too expensive and time-consuming for consumers, Estonia should urgently consider and implement a financial ombudsman institution, funded by market participants, which would offer a low-cost and professional alternative solution.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller invites Urve Tiidus to the stage.
Urve Tiidus
Profiling Eesti Reformierakonna fraktsioonAI Summary
Urve Tiidus requests a comparison, focusing on the human element, regarding the initial risks, how they have evolved, and the way technology amplifies their impact. She also notes the growing trend in Estonia and internationally of fraudulent activity aimed at swindling people out of money, and asks if there is a key solution to address this.
Urve Tiidus
Profiling Eesti Reformierakonna fraktsioonAI Summary
Referring to the presenter's extensive experience in the field of risk-based supervision, Urve Tiidus wanted to know how the initial risks have changed today (especially under the influence of technology). She also inquired whether they could offer solutions to combat the problem of people being defrauded of money, which is prevalent in Estonia and elsewhere.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
He/She highlights the rapid increase in technological risks and the growing prevalence of AI-driven scams, while also noting the expanded scope of the regulatory framework and the need for close collaboration with law enforcement to preserve trust in the financial sector.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, highlighted that risks have fundamentally changed over the last five years, emphasizing two main aspects: technological risk, which is related to the widespread use of artificial intelligence in both criminal activity and financial intermediation, and legal risk, stemming from the explosive growth in regulations related to the European Union (over 700 legal acts, which have become overwhelming). He also noted that the symbiosis of technology and fraud is a global challenge that erodes trust in the financial sector, even though the fight against fraud is primarily the responsibility of law enforcement agencies and individuals themselves.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller asks for Peeter Ernits to be invited to speak.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits expressed concern regarding the hastily assembled super database, noting that the Financial Supervision Authority had not been consulted and that the president had abandoned the idea. He then asked whether the matter had been investigated and if such a database was sensible.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits expressed sincere appreciation to the presenter for the rarely heard clear and wise speech, but immediately turned to a critical topic, asking whether the wisdom of creating the super database—which the president had shelved before the summer but which has now returned to the agenda—had been consulted with the Financial Supervision Authority in the interim.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervisory Authority (FSA), notes that the FSA was not involved early in the process of drafting the super-databases law, which is why they lack a formal position. At the same time, he emphasizes that because financial supervision deals with sensitive bulk data, it is critically important when creating a new database to ensure the independence of its administrator and to establish strong control mechanisms. This is necessary to mitigate the risks of abuse of power and overreach that accompany the executive branch’s increasing informational authority.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, said that the FI is not formally involved in the discussion of the super database law, and stressed the importance of independence and strict control mechanisms to prevent excessive interference by the authorities and ensure the architectural balance necessary for fighting crime.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller calls upon Tanel Kiik to speak.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik recognized Kilvar, the departing head of the Financial Supervisory Authority, for his long and fruitful career, highlighting the institution's effective management and clear communication. He also asked Kilvar to share, in retrospect, any unfinished business or regrets, and to provide recommendations and define the main challenges for his successor.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik thanks the head of the Financial Supervision Authority for his long service and asks what remains to be done and what recommendations he has for his successor.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervisory Authority, assessed the Estonian financial market as stable and well-capitalized, but highlighted two significant shortcomings: the lack of a financial ombudsman for rapid consumer assistance, and the need to improve misdemeanor proceedings to create a more effective deterrence mechanism for financial intermediaries against economically beneficial violations. He simultaneously stressed the importance of a conservative supervisory policy in managing long-term risks.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler emphasized that Estonia lacks a financial ombudsman and a mechanism for the rapid resolution of consumer disputes, and that the administrative offense procedure must be made more cost-effective, while maintaining conservative supervision, allowing for some innovation, and carefully calibrating capital buffers.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Madis Kallas to speak.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas praised the presenter for their insightful answers regarding the supervision of financial institutions. However, he then shifted focus to the issue of consumer and quick loans at the individual level, asking how the authority could use its influence and clear communication to restrict the businesses that make these loans so attractive, thereby alleviating the debt burden faced by tens of thousands of people.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas recognized the institution's extensive work, but stressed the need to focus attention on the individual level, asking how the institution's influence and clear communication could be utilized to curb companies aggressively offering consumer and quick loans, thereby alleviating the debt burden problem faced by tens of thousands of Estonians.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas urges you to use your influence and clear communication to make consumer and quick loan providers less attractive, thereby reducing the problems they cause for people.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, confirmed that the Authority has revoked 20% of operating licenses in the quick loan market to enforce the principle of responsible lending. He noted that although the market is financially small (around 300 million), it creates social friction because it targets vulnerable groups, and he stressed the importance of a positive credit register for improving supervision.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervisory Authority, stated that 20% of quick loan providers have lost their operating licenses over the last two and a half years. He noted that this sends a signal to the market that certain business practices are not suitable for Estonia, requiring responsible lending, supervision, and possible legislative and credit registry measures, and that although the quick loan market is worth approximately 300 million euros, it creates social friction and is a problem that affects vulnerable groups.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Riina Sikkut to speak.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut expresses her thanks and emphasizes cooperation with the Financial Supervisory Authority, referring to the need for planned legislative amendments in the field of savings and loan associations and credit information sharing, as well as regarding the requirements for residential real estate valuation based on input from the FI. Furthermore, she presents the results of a study concerning the non-bank credit market to the Finance Committee and shows that users consider the size of the monthly repayment to be the most important factor.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut thanked everyone for the thorough discussion, highlighted the strong cooperation between the Finance Committee and the Financial Supervisory Authority in legislative work (savings and loan associations, the positive credit register, collateral valuation), and then asked the presenter for an assessment of the non-bank credit market, referencing a study which showed that consumers consider the size of the monthly repayment to be the most important factor.
Aseesimees Arvo Aller
AI Summary
The message of the speech is that now is your time to act.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut emphasizes that the issue does not concern the cost rate of credit.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller thanks.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut raised the question regarding the necessity of additional regulations, inquiring whether they should consider limiting nighttime lending or imposing other similar restrictions.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut asks whether additional measures are necessary, such as restrictions on nighttime lending.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler stressed that the regulation of consumer credit must occur through dialogue involving Parliament, the market, and consumers, and must focus on establishing incentives for responsible lending, taking into account the lack of depositor protection among non-bank credit providers and the need for similar mechanisms.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, believes that regulating consumer credit requires political dialogue and value judgments, and that instead of easily circumvented restrictions, the focus should be on improving incentives for responsible lending. It is particularly important for non-bank credit providers, who lack the system of capital buffers that banks have, to make supervisory procedures faster and fines sufficiently deterrent to ensure effective compliance with the rules, thereby avoiding a situation where the penalty arrives too late to be impactful.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller invites Priit Sibul to take the floor.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul thanks the manager and the server and highlights the impressive development of financial supervision over the past couple of decades. He then poses two questions: how to further integrate the Baltic and Nordic markets around the Baltic Sea, and how to distinguish opportunists, and whether the rules aren't too strict, thereby limiting the realization of opportunities.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul commended the presenter for the comprehensive overview of the impressive development of financial supervision over the last couple of decades, but raised two questions: what steps should be taken to integrate the cross-Baltic Sea Baltic and Nordic markets, and how the Financial Supervision Authority manages to draw the line between excluded opportunists and genuine new players, in order to avoid stifling opportunities with overly strict regulations.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, drawing on his experience as both a lawyer and a financial supervisor, stresses that the stability of the Estonian business environment is paramount for foreign investors. He emphasizes that maintaining this stability requires professionalism, transparency, and consistency in the positions taken by the financial supervision body. He observes that decisions regarding market entry are more of an art than a science, and supervision must remain relatively conservative. This is because excessive liberalism, should banking risks materialize, would result in enormous costs to the state budget. Avoiding such costs is the primary duty of a supervisory body acting in the public interest.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler stressed that Estonia is preserved and enhanced by maintaining a stable business and legal environment, ensuring professional and open financial supervision, and conducting careful risk assessments when bringing products or services to market, which ultimately reduces the burden on the state budget and boosts investor confidence.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller called upon Maris Lauri to speak.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
Maris Lauri addresses banking supervision, noting that the majority of Estonian banking supervision occurs at the European level. She wishes to confirm the fluidity of this cooperation and asks whether any banking regulations require review or relaxation, requesting clarification on this point.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
Maris Lauri focused on banking issues, requesting assurance that cooperation between Estonian and European banking supervision is seamless. She also sought clarification on whether, and if so, which banking regulations might need reviewing or loosening.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler emphasized that the Financial Supervision Authority (FI) focuses on financial stability, and while competition is an important topic, it is not the FI's main regulatory area. Furthermore, Estonian banking is characterized by the growth of smaller banks and a reduction in the concentration of large banks, a trend supported by close cooperation with the European Central Bank (ECB) aimed at risk-based supervision and reducing bureaucracy.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, provided an overview of the developments in the Estonian banking market and the principles of supervision. He confirmed that while the Financial Supervision Authority's (FI) priority remains financial stability, market concentration has decreased in recent years, particularly due to the growth of smaller banks, although competition in the business loan segment remains weak. He stressed that legally, entering the market is straightforward, and highlighted his role at the European Central Bank as a proponent for risk-based supervision and reducing bureaucracy—an approach characteristic of Estonian regulatory practices.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Peeter Tali to come and speak.
Peeter Tali
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Tali asks what the role of the Financial Supervision Authority is during wartime or a crisis, and whether they have thought it through and practiced this, especially in a situation where there is no internet and/or electricity for a week.
Peeter Tali
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Tali expressed interest in the crisis preparedness of the Financial Supervision Authority, specifically asking what measures are being implemented and whether they have practiced a scenario where the internet and electricity supply is interrupted for a week.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, explained the role of the Financial Supervision Authority (FSA) in an emergency, emphasizing that the Bank of Estonia is the central command center for ensuring vital financial services (cash circulation and payment systems). Furthermore, the FSA acts as the central bank’s legal arm, possessing the statutory authority to mandate and prohibit commercial banks, for instance, when restricting cash withdrawals.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
In a state of emergency, the Bank of Estonia acts as the coordinating central body, and the Financial Supervision Authority executes its orders, mandating or restricting banks as necessary, to ensure the continuity of vital financial services.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller calls Tarmo Tamm.
Tarmo Tamm
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tarmo Tamm wanted to know how the situation is regulated when a company's bank account is closed, funds are left in it, and the three-year recovery period has already elapsed—specifically, who that money belongs to in such a case and what its fate is.
Tarmo Tamm
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tarmo Tamm asks how the restoration process works for a company account suspended by banks and the funds held within it: whether the account can be reinstated within three years, and after that, who the money goes to and how this is regulated.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervisory Authority (Finantsinspektsioon), clarifies the status of bank deposits belonging to companies whose operations have been suspended in the Commercial Register. He emphasizes that while the claim against the bank still exists, it can no longer be enforced through the courts once the three-year statute of limitations has expired. He notes that these "floating" claims are estimated to be worth approximately 6 million euros. While this is not a significant issue currently, given the overall volume of the banking sector, regulatory measures should be considered if the amount begins to swell.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler stated that the failure of companies to submit reports results in claims being made against the bank, which can only be enforced through court proceedings within a period of three years. After the statute of limitations expires, this opportunity vanishes, but the claim itself continues to exist. There are approximately 6 million euros worth of such claims, which currently do not represent a broader regulatory issue, but the situation can be regulated if the need arises.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller makes a request to Mart Võrklaev.
Mart Võrklaev
Profiling Eesti Reformierakonna fraktsioonAI Summary
Mart Võrklaev thanked the chair of the session, the presenter, and the Financial Supervision Authority for their excellent work. He then inquired about the progress of the new tasks introduced last year—the supervision of crypto-asset market participants and the supervision of credit unions—asking what the challenges and rewards have been, and how these changes are impacting market participants and their services.
Mart Võrklaev
Profiling Eesti Reformierakonna fraktsioonAI Summary
Mart Võrklaev commends the Financial Supervision Authority for its work and wishes to know how the processes related to the new supervisory tasks assigned by the Riigikogu have progressed, namely the licensing of crypto-asset market participants and the regulation of the activities of credit collection agencies, and what impact these changes have had on the respective markets.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, stated that a transition period for the crypto-asset market is in effect in Estonia until July 1, 2026, and the Financial Intelligence Unit oversees these crypto-asset companies. Interest in new operating licenses remains modest, but four operating licenses have been granted to credit collection companies, and market competition is increasing. Simultaneously, guidelines have been developed for the fairer treatment of debtors, and information days and dialogue are being organized with crypto-asset stakeholders.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, provided an overview of the current status of regulation in two financial sectors. He stressed that regarding the crypto-asset market, Estonia is utilizing the maximum transition period (until 2026) and is deliberately conservative when issuing new operating licenses to mitigate previous risks. The speaker also confirmed that competition has emerged in the credit collection market (four licenses have been granted), and the supervisory body's primary focus is now the fair treatment of debtors. Initial guidelines on this matter have already been issued to ensure the market is guided in the right direction from the very outset.
Aseesimees Arvo Aller
AI Summary
The Deputy Chairman invites Anti Allas to take the floor.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas points out the significant societal damage caused by quick loans and asks whether the burden on entrepreneurs should be assumed, with the responsibility being borne by the quick loan providers.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas commended the presenter and raised a pointed question regarding the devastating societal impact of quick loans, stressing that nearly 100,000 debtors cause significant social damage and place an undue burden on employers. Consequently, he proposed the idea for discussion that the responsibility for debt recovery should be removed from businesses and placed squarely on the shoulders of the irresponsible quick loan providers themselves.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, addressed the regulation of the non-bank lending market. He emphasized that while regulatory options range from complete prohibition to full permission, the current focus is on protecting vulnerable groups and clarifying the principles of responsible lending. He pointed out that the number of operating licenses has already been reduced by 20%. Furthermore, to better discipline the market and ensure quick loan providers adhere more strictly to the law, there are plans to implement a positive credit register, a financial ombudsman, and a simpler fine procedure, all of which would help prevent people from falling into a debt spiral.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler noted that the consumer credit market is regulated across the full spectrum, from outright prohibition to full permission. He mentioned that work is currently underway, including measures like reducing the number of operating licenses, establishing a positive credit register, and appointing a financial ombudsman. These steps are intended to discipline lenders and help prevent excessive debt burdens. He added that he had never considered the issue from the employer's perspective.
Aseesimees Arvo Aller
AI Summary
The address is merely the act of inviting Lauri Laats to speak.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats submitted questions regarding RAB's activities in light of the scandal that erupted in July, including whether the request for enforcement register data, which was considered to be five years old, was lawful. He also inquired about LHV's contractual penalty of 247 million euros, the assessment and results of RAB's activities, the impact of sanctions on banks, and the progress of the government's proposal to simplify the refinancing of home loans.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats is focusing on the RAB data usage scandal that erupted in July, seeking to find out what the government's assessment of RAB's activities is, how the LHV 247 million euro contractual penalty claim has been resolved, and what the status is of the procedure for making home loan refinancing simpler and more affordable.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler stressed that trust in the financial market can only be maintained if the state's data collection and borderline queries, including the activities of the Financial Intelligence Unit (Rahapesu Andmebüroo), are legal and subject to democratic control, and bureaucracy must be reduced in the fields of refinancing and real estate valuation by utilizing digital solutions.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, supports the Chancellor of Justice’s criticism leveled at the Financial Intelligence Unit (FIU/RAB), which collected individuals’ bank account data without a legal basis. He stressed that state activity in the financial market must strictly adhere to the law to maintain public trust, and that judicial review should be considered for sensitive data requests. Furthermore, the discussion covered the necessity of simplifying home loan refinancing by reducing the associated bureaucracy, specifically addressing the role of notaries and real estate appraisers when transferring a loan between banks, with the goal of boosting competition.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervisory Authority (FSA), addressed the Chancellor of Justice’s criticism leveled at the Financial Intelligence Unit (FIU, or RAB). He emphasized that collecting individuals’ bank account and transaction data without a clear legal basis erodes confidence in the financial market and requires strict adherence to the law in state activities, along with a democratic control mechanism, such as judicial oversight over sensitive data inquiries. Furthermore, he supported the initiative to reduce bureaucracy associated with home loan refinancing, specifically requirements for notarization and repeated property appraisals. The goal is to simplify the process of switching loans between banks and stimulate competition in the financial market.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invited Vadim Belobrovtsev to speak.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev continued on the topic of finance, bringing up the Centre Party's draft bill as an example. The bill aimed to abolish the three months' interest charged when repaying a home loan prematurely, which would make refinancing easier and cheaper for people. However, he regrets that the coalition members did not support the initiative.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Belobrovtsev explained that the draft bill amending the Law of Obligations Act, initiated by the Center Party faction, would have made the early repayment and refinancing of home loans cheaper and simpler, but the coalition did not support it, and he asks whether this is the right goal to stand up for.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler, Chairman of the Management Board of the Financial Supervision Authority, noted that transferring a housing loan from one bank to another would certainly be simplified by eliminating the prior notification requirement. However, he stressed that in order to remove the real barriers, all related aspects, such as notary fees, should be addressed holistically.
Finantsinspektsiooni juhatuse esimees Kilvar Kessler
AI Summary
Kilvar Kessler stated that simplifying the process of taking over a housing loan from one bank to another—specifically by removing the requirement for a three-month buffer or advance notice—and uniformly addressing barriers such as notary fees and real estate agency costs, would allow for smoother loan transfers.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller announced the conclusion of the question round and opened the floor for negotiations among the factions, first giving the word to Maris Lauri, the representative of the Estonian Reform Party faction.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller concludes the questions, opens the debate for the factions, and invites Maris Lauri to speak on behalf of the Reform Party Faction.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
Maris Lauri emphasized that the Estonian financial system has developed significantly since the restoration of independence and requires secure, flexible regulation, as well as close cooperation between the Financial Supervision Authority, the Bank of Estonia, the police, and the IT sector to combat financial fraud and money laundering and to enhance consumer protection.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
Maris Lauri provides an overview of the development of the Estonian financial system, tracing its path from the "colorful" mistakes made in the early days of re-independence to the more or less normal system we have today. She emphasized the role of the Financial Supervision Authority as a "doctor" in establishing rules that must be secure yet flexible. At the same time, she highlighted continuing issues, such as malicious savings and loan associations and the epidemic of financial fraud, noting that combating these requires legislation, knowledge, the creation of a financial ombudsman, and the implementation of a positive credit register.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar addressed the Riigikogu from the rostrum on behalf of the Social Democratic Party faction, stating that he had the authorization of Andre Hanimäe.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar, representing the Social Democratic Party faction, offered his thanks and invited [someone] to step up to the rostrum under the authority of Riigikogu member Andre Hanimägi.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Andre Hanimägi acknowledged the systematic work and contribution of the Financial Supervision Authority to consumer protection, particularly in boosting financial literacy. However, he highlighted the Social Democrats' concern regarding the non-bank credit market, where high interest rates on quick loans and low borrower awareness create a significant risk of people falling into a debt cycle. Consequently, the speaker stressed the necessity of limiting repeat borrowing and called for the swift establishment of a financial ombudsman institution. This body would resolve financial disputes independently and quickly, thereby alleviating the courts' heavy workload, by reactivating the draft bill that was shelved back in 2022.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The Social Democrats are calling for the creation of a Financial Ombudsman to ensure fair, transparent, and effective conduct in the consumer and credit provider market, quickly resolve disputes, reduce the burden on the courts, increase financial literacy, and limit repeat borrowing.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded the sitting with words of thanks, expressing gratitude to the Chairman of the Management Board of the Financial Supervision Authority and all members of the Riigikogu for the lively discussion.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded the Riigikogu sitting, noting that there were no further requests to speak, and thanked the Chairman of the Management Board of the Financial Supervision Authority and all members of the Riigikogu for the substantive and engaging discussion.