Mortgage lending can be reined in by setting higher risk weights for loans. There are, however, differences in calculation methods. Harmonisation would enhance a level playing field between banks.
Insurance companies as major investors are a potential source of systemic risk
Overheating of global financial market could also have a destabilising impact on Finland
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.