Haku

A month ago, during President Vladimir Putin’s visit to Beijing, China and Russia declared that the friendship between them has “no limits” and that there are “no forbidden areas of cooperation”. A few weeks later, Russia ...

Weak profitability is a major problem for the European banking sector. Particularly in the euro area, a weakly performing economy and related impairment losses, subdued credit dynamics and prolonged low interest rates have ...

The countercyclical capital buffer requirement is one of the new macroprudential instruments that will come into use in Finland. It enables the strengthening of the banking sector’s resilience to systemic risks resulting ...

The consequences of a banking crisis could be exceptionally severe in Finland’s concentrated banking system. Regulatory means must therefore be deployed to ensure the capital adequacy and liquidity of Finnish banks remain ...

Structural changes in banking have created space for new players on the financial markets. Weak economic growth, regulation, search for yield and technical innovations have facilitated growth in shadow banking. Even though ...

Risk weights help to establish each bank's minimum own funds relative to lending, ensuring the bank's ability to cover the related credit risk. The risk weight calculation method chosen by the bank may have a significant ...

The COVID-19 pandemic has led to an increase in the credit risk faced by European banks. Although the pandemic’s negative impact on the economy has been eased thanks to various support measures, there is still much uncertainty ...

Due to climate change, extreme weather events will become more frequent, resulting in material damage to buildings and other infrastructure. In Finland, for example, this will probably increase the risk of coastal floods. ...

Finland and the EU have now gained almost a decade of experience in macroprudential policy. Banks’ risk resilience has been increased, and the supply of credit has been relatively stable even in crisis situations. Disruptions ...