Bank of Finland Bulletin 1/2023 : Financial Stability Assessment, April 2023

Confidence in the financial system is created through persistent action 3
Higher interest rates are beginning to bite 8
Rise in interest rates is testing the resilience of borrowers, investors and the financial system 11
Strong rise in interest rates puts strain on mortgage borrowers 34
Risks associated with housing company loans are increasing – Regulatory reforms will restrict use of such loans in the future 48
Capital buffer requirements included in the macroprudential toolkit are supporting the risk-bearing capacity of banks 58
How can Finland’s use of the countercyclical capital buffer requirement be further developed? 67
Financial sector contingency planning will help ensure continued functioning of society in all circumstances 71

Find the accessible version on bofbulletin.fi.