finanssi

Finanssi refers to the field and practice of managing money, credit, and capital. In Finnish usage, it encompasses personal finance, corporate finance, and public finance, as well as the institutions and markets that facilitate the flow of funds.

Key activities include budgeting and saving, investing, lending, borrowing, risk management, and financial planning. Corporate finance focuses on funding, capital structure, and corporate governance, while public finance covers budgeting, taxation, debt management, and the provision of public services.

Financial markets and institutions play a central role. Markets trade debt, equity, and derivatives, and payment systems enable everyday transactions. Financial institutions such as banks, insurers, pension funds, and asset managers intermediate funds, manage risk, and provide liquidity. Regulators and supervisors, including central banks and national authorities (for example the Finnish Financial Supervisory Authority, Finanssivalvonta, and its FIN-FSA role in Finland), oversee stability and consumer protection.

Financial instruments include loans, bonds, stocks, and various derivatives, as well as currencies. Central banks influence policy rates and money supply, while financial markets provide price discovery and capital allocation.

Current trends include digital finance and fintech, online banking, algorithmic trading, robo-advisors, and the growth of sustainable or responsible finance (ESG). Issues such as financial inclusion, cyber risk, and regulatory alignment are ongoing considerations for the field.