Latest articles and blogs
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Financial regulation has proved its worth in the turbulence of recent years
The regulatory and supervisory tightening since the global financial crisis has protected banks from new crises. Research findings indicate that the benefits achieved through regulation and macroprudential policy have exceeded the disbenefits.
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Moderate growth in Finnish companies’ non-performing loans
In an economic crisis there can be a risk of a credit slump in which loan losses weaken banks’ ability to extend credit. During the COVID-19 pandemic the risks of corporate lending have grown, but substantial loan losses have been avoided.
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Banks must be able to finance firms and withstand loan losses amid the coronavirus pandemic
Regulatory reform has made banks more resilient than they were during the previous crisis. A robust lending capacity is now needed to help Finnish firms through the coronavirus crisis.
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Corporate credit risk affected by business cycles and industry factors
Finnish banks have granted relatively little credit to those industries most vulnerable to bankruptcies. This has helped minimise banks’ corporate credit risks.
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How can we dampen the build-up of housing price bubbles?
A range of instruments could be deployed to restrain dangerous growth in lending for house purchase and household debt.
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Finland's neighbours rein in lending for house purchase
Neighbouring countries’ loan ceiling regulations are tighter than the loan ceiling that comes into force in Finland in summer 2016.
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Concentrated banking system amplifies banking crises
The consequences of a banking crisis could be severe in the exceptionally concentrated Finnish banking system.
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Regulation has a limited impact on margins
The impact of regulation on growth in loan margins has been exaggerated. The impact is strongest in high-risk loans.