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+
Finland, the land of branches – the landscape of the Nordic banking sector The Finnish, Swedish, Norwegian and Danish banking sectors are large and concentrated and there are systemic risks relating to lending for the residential and commercial real estate markets. Share Email Twitter Facebook Linkedin Google+
Reform of insurance sector regulation Solvency II regulation has just come into effect in the EU. This was a necessary change, but its timing is awkward for insurance undertakings, as the current low interest rates and economic uncertainty are placing a strain on their solvency. Share Email Twitter Facebook Linkedin Google+
Low interest rates place a strain on the banks In Finland, banks’ most important source of earnings, the interest margin, is now under pressure from a number of directions. Share Email Twitter Facebook Linkedin Google+
Insurance companies as major investors are a potential source of systemic risk Insurance companies’ role as major investors can cause market disruptions if the companies have to resort to forced sales. Share Email Twitter Facebook Linkedin Google+
Concentrated banking system amplifies banking crises The consequences of a banking crisis could be severe in the exceptionally concentrated Finnish banking system. Share Email Twitter Facebook Linkedin Google+