Latest articles and blogs
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Rise in cost of living and higher interest rates have increased the pressure on many indebted households
Many households were under increasing financial pressure when inflation surged and interest rates were raised in the first few years of the 2020s. Essential spending rose faster than household income, which placed a strain especially on indebted households. Nevertheless, households have, for the most part, coped well with their loan servicing, and resilience must continue to be maintained in the future.
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Mortgage borrowers have proved resilient against the interest rate risk of their loans
Finnish mortgage borrowers coped well with their loan servicing costs during the period of steep rises in interest rates. Borrowers should ensure they are prepared for various kinds of financial risks in the future too.
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Strong rise in interest rates puts strain on mortgage borrowers
Fewer new housing loans have been taken out with interest rate hedging. Hedging products are used least by the most highly indebted.
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Structural changes in banking have paved the way for shadow banks
The term ‘shadow bank’ often evokes negative connotations. However, the importance of shadow banks to the financial markets is increasing.