Higher interest rates are beginning to bite : Simply short

Abstract

Banks and the rest of the financial system in Finland have remained stable despite the many disruptions in the global economy and financial markets this spring and in recent years. Households with high debts in relation to their income may come under particular strain in the near future, as both loan servicing and other daily costs are rising at the same time. There is still work to be done to improve resilience to crises. Key steps would include a stronger cap on household borrowing in Finland, and a common system of protection for bank deposits across Europe.