Latest articles and blogs
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Risks associated with housing company loans are increasing – Regulatory reforms will restrict use of such loans in the future
The increase in household and investor indebtedness from housing company loans has been a concern to the authorities. Housing company loans still account for a considerable share of the financing for new homes, but new legislation will start to curb the level of debt incurred via housing company loans.
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From crisis to crisis – companies are once again facing a challenging operating environment
If prolonged, the war can weaken the profitability of the corporate sector. It will be harder for companies to service their debts, if energy continues to be expensive and their products and services do not earn as much as before.
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Imposing a loan-to-value limit on housing company loans would only affect a share of construction finance
Housing company loans are increasing household indebtedness and altering the structure of debt. A loan-to-value limit of 60% would reduce housing-purchasers’ substantial accumulation of debt via housing company loans.
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Pandemic continues to cast a shadow over the outlook for European banks’ credit risks
COVID-19 has ravaged the banks less than feared. Growth in non-performing loans would weaken banks’ ability to extend credit. A number of methods have been suggested to reduce the number of non-performing loans.
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Coronavirus shock will further weaken bank profitability in the euro area
The coronavirus pandemic will further weaken the short-term profitability of banks. Government and central bank policy measures are mitigating the rise of funding costs and are bolstering lending capacity.
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Slightly negative central bank interest rates ease financial conditions
Negative interest rates have been an integral part of the ECB's overall monetary accommodation for just over five years now. Research indicates that the advantages of slightly negative interest rates outweigh the disadvantages.
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New methods needed to rein in consumer credit
Consumer credit can drive households into financial difficulties. New measures are needed to prevent increasing debt problems.
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Finnish commercial property market increasingly intertwined with foreign markets
Foreign investment in the Finnish and other Nordic property markets has increased. As a consequence the Finnish market is more vulnerable to external risks.
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The impact of digitalisation on bank profitability
Investment in IT will improve banks’ long-term profitability, while weakening short-term profitability.
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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.
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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.
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The Finnish real estate investment market
The Finnish real estate investment market is lively and large in proportion to the size of the economy, foreign investment and high valuations may expose the Finnish market to economic shocks from abroad. The risks may reflect on banking particularly via lending.