Loan losses erode results of domestic banking
Savolainen, Eero (20.10.2009)
JulkaisusarjaBank of Finland. Financial Market Report
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201408075022
Profitability of domestic banking weakened further in January June 2009. Banks are operating in a difficult environment: net interest income declined due to low market interest rates, and the economic recession reduced the demand for credit and boosted loan losses. In this context, banks results can be considered reasonable. Results in the second half of the year are clouded by uncertainty related mainly to the future trend in loan losses.