The Bank of Finland was reluctant to return to the old days of administrative regulations. In addition, the central bank had no statutory right in Finland to demand cash reserve deposits from the banks. 2. The Ministry of Finance proposed to end the tax-deductibility of interest expenses. This was heavily opposed by political parties. Some gradual progress was made, but it was too modest.
The main purpose of the Protocole D’Accord will be to expand on the scope of the Memorandum of Understanding (MOU) signed between the two regulatory and supervisory bodies in December 2002. The Protocole D’Accord makes further provision for the parties to agree on the extent of their responsibilities and harmonization of their procedures with respect to financial institutions which are regulated by both institutions.