Financial stability – Bank of Finland Bulletin

Increased flood risks caused by climate change will also affect banks

Due to climate change, extreme weather events will become more frequent, resulting in material damage to buildings and other infrastructure. In Finland, for example, this will probably increase the risk of coastal floods.

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Could the Green Supporting Factor help mitigate climate change?

Pandemic demonstrates necessity of risk buffers

Coronavirus shock will further weaken bank profitability in the euro area

Banks must be able to finance firms and withstand loan losses amid the coronavirus pandemic

Nordic countries are vulnerable to housing market risks aggravated by the coronavirus pandemic

Now is the time to deploy the rainy day buffers

Regulation has strengthened the financial system’s resilience

From Giovannini barriers to Capital Markets Union

Debt must be measured against repayment capacity

The highly indebted cut spending as the economy slows

Capping debt-to-income ratios complementary to housing loan cap

New methods needed to rein in consumer credit

Corporate credit risk affected by business cycles and industry factors

Finnish commercial property market increasingly intertwined with foreign markets

The impact of digitalisation on bank profitability

Household debt burden worryingly large – we must take a variety of measures to guard against the risks

Rising household debt levels must be addressed in time

Debt risks amplified by housing company loans

Risks on the Swedish housing market also a cause for concern in other Nordic countries

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