Pandemic demonstrates necessity of risk buffers The financial system is stronger today than during earlier crises, but banks will inevitably see a rise in their loan losses. Government and the financial sector must continue their exceptional measures to support businesses and households. Share Email Twitter Facebook Linkedin Google+
Nordic countries are vulnerable to housing market risks aggravated by the coronavirus pandemic The coronavirus pandemic has the potential to aggravate long-standing vulnerabilities in the Nordic housing market. Housing market disturbances can increase credit risk for banks and interfere with their access to funding. Share Email Twitter Facebook Linkedin Google+
What factors influence house prices and residential construction? Abundant construction in the Helsinki metropolitan area has put a brake on apartment prices. Share Email Twitter Facebook Linkedin Google+
Debt must be measured against repayment capacity The current loan-to-value cap on housing loans urgently needs to be accompanied by a new, more comprehensive cap on debt. This would take into account all a loan applicant’s debt relative to their income. Share Email Twitter Facebook Linkedin Google+
Risks on the Swedish housing market also a cause for concern in other Nordic countries An extensive materialisation of risks on the Swedish housing market could also have notable effects in the other Nordic countries. Share Email Twitter Facebook Linkedin Google+
Repricing of securities markets’ risk premia still most significant threat to global financial stability Low risk premia and high valuations have increased global securities markets’ exposure to price corrections and abrupt shifts in risk premia. Share Email Twitter Facebook Linkedin Google+
Wide regional disparities in Finnish house prices and household indebtedness Housing debt has grown, both in absolute terms and relative to income, especially in growth centres, where housing is more expensive and subject to greater pressures from demand than elsewhere. Share Email Twitter Facebook Linkedin Google+
Household indebtedness contributing to corporate loan losses When indebted households cut their spending during an economic downturn, this also increase the financial difficulties of non-financial corporations. Share Email Twitter Facebook Linkedin Google+