Financial stability

The Bank of Finland ensures, together with the European Central Bank and other key authorities, that the financial system is stable and risks remain under control.

The reliable and efficient operation of the financial system increases wellbeing and prosperity in the economy as a whole. A stable financial system enables access to finance to citizens and companies.

Under all circumstances, citizens must be able to use their bank accounts, companies’ payments must flow smoothly, investors must be able to trade, and banks must be able to intermediate finance to the economy.

Why does the Bank of Finland promote the stability of the financial system?

Financial crises and instability are detrimental to economic growth, employment and investment. Financial stability is founded on confidence, and the basis for this is created through persistent action.

Assessments on financial stability

The Macroprudential Report discusses stability threats related to lending, household and corporate indebtedness and the real estate markets.

Topical

Analysis 11 Dec 2024

Climate change and biodiversity loss as systemic threats to financial stability in Finland

Climate change and biodiversity loss pose threats to financial stability.

Analysis 23 May 2024

Finland’s banking sector could withstand even a harsher recession than forecast

The capital position of Finland’s banking sector is expected to strengthen in the immediate years ahead, provided that interest rates and the economy ...

Analysis 23 May 2024

Financial regulation has proved its worth in the turbulence of recent years

The regulatory and supervisory tightening since the global financial crisis has protected banks from new crises.

Editorial 14 May 2024

Stability is paramount – Resilience will remain essential going forward

The resilience of Finland’s financial system has remained robust.

Simply Short 14 May 2024

Finland’s housing market has very swiftly come to a standstill

Higher interest rates have brought Finland’s housing market to a halt.

Analysis 6 Mar 2024

Instability in crypto-asset markets is a reminder of the risks and underlines the need for regulation

The instability seen in crypto-asset markets has had very little effect on the global financial system, but the growing and partially hidden linkages ...

Analysis 19 Jul 2023

Climate change must be fought – what does PACTA say about the transition risks for banks?

The need to rapidly reduce carbon dioxide emissions will adversely impact the operations of many companies, and may make old operations unprofitable.

Financial Stability Assessment 9 Jun 2023

Rise in interest rates is testing the resilience of borrowers, investors and the financial system

Finnish households have more debt than ever before, and amid fast rising interest rates.

Analysis 9 Jun 2023

Strong rise in interest rates puts strain on mortgage borrowers

Fewer new housing loans have been taken out with interest rate hedging. Hedging products are used least by the most highly indebted.

Analysis 9 Jun 2023

Risks associated with housing company loans are increasing – Regulatory reforms will restrict use of such loans in the future

The increase in household and investor indebtedness from housing company loans has been a concern to the authorities.

Analysis 9 Jun 2023

Blogs

Ambrocio, Gene 24 Sep 2021

On financial stability, monetary policy, and macroprudential policy

Alakiuttu, Antti 29 Apr 2021

Clearer view of non-banking loans now available

A stable financial system fosters the wellbeing of society

Financial stability is founded on trust. The Bank of Finland builds trust in a long-term manner by analysing in detail possible risks to the financial system.

Articles and blog posts on financial stability

The Bank of Finland is responsible for oversight of the financial system

Climate change does not yield to the financial system

Frequently asked questions

Where can I find information on housing loans?

Where can I find information on housing loans?

Statistical information on housing loans can be found in the Bank of Finland’s Loans and deposits dashboard and open data service.

The Financial Supervisory Authority's website has information on what to take into account when considering a housing loan (link) and negotiating the terms of a loan with a bank (link).
Where can I view the most common reference rates for housing loans?

Where can I view the most common reference rates for housing loans?

In Finland, the most common reference rates for housing loans are the Euribor rates, with the 12-month Euribor being the most common. The Bank of Finland’s website has information on the development of Euribor rates and the number of new Euribor-linked housing loans.

The Bank of Finland’s website also has information on the interest rates and numbers of housing loans linked to other reference rates and of fixed-rate housing loans.
How does the Bank of Finland ensure that households do not get into too much debt?

How does the Bank of Finland ensure that households do not get into too much debt?

The Bank of Finland continuously monitors and analyses household indebtedness and communicates regularly on the development of indebtedness and related risks.

In addition, the Bank of Finland participates in the preparation of macroprudential policy together with other authorities. One of the aims of macroprudential policy is to curb the excessive accumulation of household debt and the risks this poses to the economy and the financial system.

In Finland, there are legislative restrictions on household indebtedness. These include the maximum loan-to-value ratio (loan cap) for housing loans, the maximum duration of new housing loans and restrictions on housing corporation loans for new housing projects. In addition, the Board of the Financial Supervisory Authority has issued a recommendation to banks on the affordability testing of mortgage borrowers and the maximum debt-service-to-income (DSTI) ratio.
Where can I find information about the deposit guarantee?

Where can I find information about the deposit guarantee?

Deposits are protected by a statutory deposit guarantee scheme, which in Finland is the responsibility of the Financial Stability Authority. The deposit guarantee protects the funds in a depositor’s account in the even that a deposit bank becomes permanently insolvent. More information on the deposit guarantee scheme can be found on the website of the Financial Stability Authority.

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Financial stability

Why does the Bank of Finland promote the stability of the financial system?

Assessments on financial stability

Topical

Climate change and biodiversity loss as systemic threats to financial stability in Finland

Finland’s banking sector could withstand even a harsher recession than forecast

Financial regulation has proved its worth in the turbulence of recent years

Stability is paramount – Resilience will remain essential going forward

Finland’s housing market has very swiftly come to a standstill

Instability in crypto-asset markets is a reminder of the risks and underlines the need for regulation

Climate change must be fought – what does PACTA say about the transition risks for banks?

Rise in interest rates is testing the resilience of borrowers, investors and the financial system

Strong rise in interest rates puts strain on mortgage borrowers

Risks associated with housing company loans are increasing – Regulatory reforms will restrict use of such loans in the future

Capital buffer requirements included in the macroprudential toolkit are supporting the risk-bearing capacity of banks

How can Finland’s use of the countercyclical capital buffer requirement be further developed?

Financial sector contingency planning will help ensure continued functioning of society in all circumstances

Confidence in the financial system is created through persistent action

Higher interest rates are beginning to bite

Assessing transition risks in banks’ corporate loan portfolios

The IMF is going to significantly step up its climate work

Separating buy-to-let mortgages from other housing loans provides a clearer look into household debt

Moderate growth in Finnish companies’ non-performing loans

Blogs

On financial stability, monetary policy, and macroprudential policy

Clearer view of non-banking loans now available

Read more

Frequently asked questions

Financial stability

Why does the Bank of Finland promote the stability of the financial system?

Assessments on financial stability

Topical

Climate change and biodiversity loss as systemic threats to financial stability in Finland

Finland’s banking sector could withstand even a harsher recession than forecast

Financial regulation has proved its worth in the turbulence of recent years

Stability is paramount – Resilience will remain essential going forward

Finland’s housing market has very swiftly come to a standstill

Instability in crypto-asset markets is a reminder of the risks and underlines the need for regulation

Climate change must be fought – what does PACTA say about the transition risks for banks?

Rise in interest rates is testing the resilience of borrowers, investors and the financial system

Strong rise in interest rates puts strain on mortgage borrowers

Risks associated with housing company loans are increasing – Regulatory reforms will restrict use of such loans in the future

Capital buffer requirements included in the macroprudential toolkit are supporting the risk-bearing capacity of banks

How can Finland’s use of the countercyclical capital buffer requirement be further developed?

Financial sector contingency planning will help ensure continued functioning of society in all circumstances

Confidence in the financial system is created through persistent action

Higher interest rates are beginning to bite

Assessing transition risks in banks’ corporate loan portfolios

The IMF is going to significantly step up its climate work

Separating buy-to-let mortgages from other housing loans provides a clearer look into household debt

Moderate growth in Finnish companies’ non-performing loans

On financial stability, monetary policy, and macroprudential policy

Clearer view of non-banking loans now available

Read more

Frequently asked questions

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