Lowering the loan cap will reduce the risks associated with debt Lowering the loan cap will mitigate household indebtedness and strengthen mortgage borrowers’ risk resilience. It will not, however, remove the risks relating to the record-high level of indebtedness. Share Email Twitter Facebook Linkedin Google+
Wide regional disparities in Finnish house prices and household indebtedness Housing debt has grown, both in absolute terms and relative to income, especially in growth centres, where housing is more expensive and subject to greater pressures from demand than elsewhere. Share Email Twitter Facebook Linkedin Google+
The Finnish real estate investment market The Finnish real estate investment market is lively and large in proportion to the size of the economy, foreign investment and high valuations may expose the Finnish market to economic shocks from abroad. The risks may reflect on banking particularly via lending. Share Email Twitter Facebook Linkedin Google+
Household indebtedness contributing to corporate loan losses When indebted households cut their spending during an economic downturn, this also increase the financial difficulties of non-financial corporations. Share Email Twitter Facebook Linkedin Google+
Instruments designed to mitigate indebtedness The aim of the loan cap is to rein in household indebtedness and prevent housing price bubbles. Finland badly needs other instruments that can also restrict indebtedness. Share Email Twitter Facebook Linkedin Google+
Progress in work to complete Banking Union A single European Deposit Insurance Scheme would reduce the risk of deposit runs. Share Email Twitter Facebook Linkedin Google+
Nordic banks go digital Finns are among the leaders in Europe in the use of digital financial services. Nordic banks have invested in digital services. Share Email Twitter Facebook Linkedin Google+
Systemic risk buffer protecting the banking sector under difficult conditions The systemic risk buffer is an additional capital requirement that can bolster Finland’s structurally vulnerable banking sector. Share Email Twitter Facebook Linkedin Google+
Effects of the revised Payment Services Directive: first assessment In retail banking, the two key services are the provision of credit and management of payment transfers. The revised Payment Services Directive (PSD2), which entered into force in Finland in January 2018 may revolutionise the operating environment for banks. Share Email Twitter Facebook Linkedin Google+