High geopolitical volatility – Financial stability safety nets must not be dismantled
The Finnish economy and housing market are being weighed down by the impacts of the Iran war and interest rates. The financial system has nevertheless remained stable. Growth in the economy must be strengthened without compromising the resilience of banks, borrowers and cybersecurity.
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Working together against new AI-enhanced cyber threats
The frontier artificial intelligence models are changing the nature of cyber threats. At the same time, they are also changing our understanding of where serious disruptions and systemic risks in the financial system may originate.
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Macroprudential policy should be reshaped, not dismantled
Macroprudential policy has been used to protect against the systemic risks associated with a concentrated banking sector and high household indebtedness. There is scope for simplification in the regulation of the banking sector. There should also be greater consistency among EU countries in their use of macroprudential instruments.
