Nordic financial sector vulnerable to housing market risks
Koskinen, Kimmo; Putkuri, Hanna; Pylkkönen, Pertti; Tölö, Eero (07.06.2016)
Volyymi
90Numero
2/2016Julkaisija
Bank of Finland
2016
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201606131191Tiivistelmä
Household indebtedness is high in the Nordic countries. Housing loans are a significant part of banks' business, and covered bonds are important for banks both as sources of funding and as investments. The large size of the Nordic banking sector, its high degree of concentration and its interconnectedness with insurance companies increase the importance of housing market-related risks for the financial system and the economy as a whole. The materialisation of threats would increase losses in lending and investment activities and the cost of funding.