Coop Pank to Enhance Procedures Following Finantsinspektsioon Precept

Coop Pank, one of Estonia's five universal banks, has announced it will enhance its internal procedures following an inspection by the Estonian Financial Supervision and Resolution Authority (Finantsinspektsioon). The bank agreed with the findings and will implement the required changes within the deadlines set out in the precept, which are scheduled for 2026 and 2027.

During the inspection, Finantsinspektsioon assessed Coop Pank's governance, internal control, risk management, regulatory reporting, and lending procedures. The findings highlighted issues with the organization of governance and internal control functions, the management of operational, IT, credit, and interest rate risks, supervisory reporting, and lending practices.

Heikko Mäe, a Member of the Management Board and Chief Risk Officer of Coop Pank, stated that the bank has already started implementing the necessary changes.

The bank has already approved an Environmental, Social, and Governance (ESG) policy and updated its market risk management policy. Additionally, Coop Pank has expanded the range of scenarios used in market risk stress testing. The remaining changes will be implemented in stages, and the bank will submit supporting documentation to Finantsinspektsioon to demonstrate compliance with the requirements.

According to the release, the precept does not affect the bank's day-to-day operations or customer service and has no impact on the bank's financial results reported to date. Coop Pank, based in Estonia, has 240,600 everyday banking customers and leverages the synergies between retail and banking to bring everyday banking services closer to where people live.