Finnish financial system exposed to risks in the real economy
JulkaisusarjaBank of Finland. Bulletin
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201512081460
Threats to the stability of the euro area financial system relate to the risks to global economic growth – such as uncertainties around developments in China – and to the international financial markets. The profitability of the euro area banking sector has improved from the weak level witnessed previously, but the large amount of non-performing loans continues to weigh on banks’ balance sheets. Risks to the Finnish financial system are associated with the weakness of the economy and household debt. In order to contain potential overheating on the housing loan market and household indebtedness, the authorities will need new additions to their toolbox.
Financial stability assessment