Sweden and Denmark on Monday joined the growing group of European countries that have raised state guarantees for bank deposits amid the ongoing financial turmoil.

In Finland, the cabinet committee on economic policy met Monday to discuss the events, saying Helsinki hoped the moves "will prove efficient in resolving the existing problems. There have not been any substantial disturbances in the Finnish market."

Finland said it hoped that the meeting in Luxembourg on Tuesday of the 27 finance ministers of the European Union will "outline a common approach to stabilise the financial markets."

The Bank of Finland issued a separate statement saying it was "monitoring developments" but said the "profitability and capital adequacy of the Finnish banking system are at robust levels."

The Finnish Financial Supervision Authority said the current Finnish deposit system guarantees deposits up to 25,000 euros (34,000 dollars).

Earlier, the Swedish government said it planned to double the state guarantee to 500,000 kronor (70,000 dollars) for deposits in Swedish-owned banks.

"The measure aims at ensuring that savers continue to trust the financial system," Finance Minister Anders Borg and Local Government and Financial Markets Minister Mats Odell said.

The previous guarantee of 250,000 kronor was introduced 1996.

In Denmark, the government and the leading banks agreed late on Sunday to create a special fund worth 35 billion kroner (6.5 billion dollars) to safeguard financial stability.

The scheme was to run for two years, and included removing - for the time being - the current deposit guarantee cap of 300,000 kroner.

Peter Straarup, chief executive of banking group Danske Bank, said it was "expensive" but "considering the circumstances a good deal for the parties," he was quoted as telling financial news agency RB-Borsen.

Meanwhile, the Swedish central bank Monday further raised the new loan facility it created last week to make it easier for banks to access credits.

Riksbank Governor Stefan Ingves said the loan facility was raised from 60 billion to 100 billion kronor (8.7 to 14 billion dollars) and described the measure as "a preventive measure."

"The international financial turbulence is now clearly affecting the financial market in Sweden, Swedish banks and other financial market participants. Swedish banks have plenty of capital and limited loan losses, but the markets for long-term credit are functioning less efficiently," Ingves said in a statement.

The loans were to be offered for six months.

An initial auction was due for Monday, the central bank said. A second auction was slated for Wednesday.

Denmark and Sweden have not introduced the common European Union currency, the euro.