Bank of Finland articles on the economy
In order to prevent crises, authorities should have a more flexible range of means at their disposal to strengthen banks’ risk resilience and contain excessive growth in credit and household indebtedness.
Ever more European countries are restricting the maximum permissible level of a loan applicant’s debts or debt-servicing expenditure relative to the applicant’s income.
A single European Deposit Insurance Scheme would reduce the risk of deposit runs.
Regulatory reforms and macroprudential measures have improved the risk resilience of the bank-centred EU financial system. Work has also begun on targeting stability risks building up beyond the banking system.
The regulation of banks’ capital adequacy was only recently reformed. Assessment and monitoring of the effects of regulation will ensure a level playing field for the banks and the capacity of the financial system to support sustainable economic growth.