Stability of Finnish financial system cannot be taken for granted

Abstract

The Finnish financial system has operated smoothly amid the difficult economic conditions of the past few years. However, financial stability can never be taken for granted. Due to the structural vulnerabilities of the financial system – the concentration and interconnectedness of the financial sector – the consequences of financial crisis could be particularly serious in Finland. To strengthen the stability of the system, the macroprudential toolkit available to the Finnish authorities should be brought to an internationally comparable level.