Exceptional condition of economy and financial markets poses unforeseen risks

Abstract

Finland’s financial markets are, on the whole, stable. Nevertheless, the concentrated nature of the banking system, the accumulation of housing debt and an environment of low interest rates expose the economy and the financial system to potential problems. Moreover, the exceptional economic and financial market situation brings new, unforeseen risks in addition to the already identified vulnerabilities. This requires particular vigilance from economic policy-makers and other authorities.