Bank of Finland Bulletin : Bank of Finland articles on the economy 1/2021

New instruments are needed to rein in household debt 3
Debt-to-income cap and maturity limits necessary to curb financial stability risks 6
Nordic housing market showing strength, but not without risks 25
New mortgage-borrowers have an increasing amount of debt relative to income 36
A debt-to-income cap would dampen economic fluctuations 48
Imposing a loan-to-value limit on housing company loans would only affect a share of construction finance 53
Separating buy-to-let mortgages from other housing loans provides a clearer look into household debt 61
Moderate growth in Finnish companies’ non-performing loans 65
New stress-testing framework to assess the capital adequacy of Finnish banks 75
Pandemic continues to cast a shadow over the outlook for European banks’ credit risks 81

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