Biggest threats to financial stability are from outside Finland

Abstract

Finland’s financial system has remained stable despite the increase in global risks that are hard to predict. The trade tariffs imposed around the world by the United States are shaking the global economy and investment markets, and Russia’s war in Ukraine is undermining security in Europe. To guard against unforeseeable crises, the authorities in Finland should be allowed to ensure that Finnish banks accumulate buffers against such situations in a new way. Lending to households must continue to be on a sound basis. Finland and Europe must also ensure that businesses have access to a broader range of options for financing their investments.