Insurance companies’ role as major investors can cause market disruptions if the companies have to resort to forced sales.
Major changes underway in European banking sector
Overheating of global financial market could also have a destabilising impact on Finland
Low interest rates provide a stimulus but can also create risks
Financial stability assessment: Household debt and banking sector concentration pose risks for Finland
According to the Bank of Finland’s stability report, the financial system has remained stable despite the lack of improvement in the Finnish economy. Weak developments of the Finnish economy and risks building up on the financial markets, such as growing search for yield and low interest rates, could expose the system to risks.