The ready availability of finance has eased the position of households during the pandemic, but at the same time it accelerates the accumulation of debt. Indebtedness should be reined in with a debt-to-income cap and limits on the duration of housing loans.

The need for sustainable finance has grown because of the urgency to mitigate climate change.

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.

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.