Lowering the loan cap will reduce the risks associated with debt

When indebted households cut their spending during an economic downturn, this also increase the financial difficulties of non-financial corporations.

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.

A single European Deposit Insurance Scheme would reduce the risk of deposit runs.

Finns are among the leaders in Europe in the use of digital financial services. Nordic banks have invested in digital services.

The systemic risk buffer is an additional capital requirement that can bolster Finland’s structurally vulnerable banking sector.

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.

Reliable payment and settlement systems are basic requirements for maintaining financial stability and fostering economic activity. Financial services providers must ensure the safe holding and preservation of data in their possession and recovery from problem situations within a digital environment.