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Now showing items 1-15 of 15
  • Manninen, Otso; Tiililä, Nea (2020)
    Bank of Finland Bulletin. Analysis
    The need for sustainable finance has grown because of the urgency to mitigate climate change. One proposal to encourage sustainable finance is the Green Supporting Factor, which would make it less costly for entities in the financial sector to finance environmentally sustainable investments. However, it is not clear how well this would incentivise companies in the real economy to ‘greenify’ their investments. Furthermore, the uncertainties and potential adverse effects of the Green Supporting Factor make it an alternative all the less appealing.
  • Mäki-Fränti, Petri (2019)
    Bank of Finland Bulletin. Analysis
    Educational attainment among the Finnish working-age population is still high by international standards. Yet growth in the educational attainment of young adults has already started to slow, and 40–44-year-olds are now the age group with the highest level of educational attainment in Finland. Pursuing education, however, and completing a tertiary degree in particular, still remains financially worthwhile.
  • Bank of Finland (2017)
    Bank of Finland Bulletin. Analysis
    There are no immediate threats to the stability of the Finnish financial system. The relocation of Nordea’s corporate headquarters will, however, increase the banking sector’s exposure to structural vulnerabilities. The regulatory and supervisory reforms already implemented and participation in the European Banking Union will serve to mitigate the risks associated with the expansion of the banking sector, but adoption of a common European Deposit Insurance Scheme remains an important measure yet to be implemented within the Banking Union. An income-related cap on loans is needed to rein in the increase in household indebtedness.
  • Ripatti, Kirsi (2020)
    Bank of Finland Bulletin. Analysis
    One of the priorities of Finland's autumn 2019 Presidency of the Council of the European Union was the Capital Markets Union initiative, which seeks to enhance and diversify financial intermediation in Europe. Although the initiative is not new, it has proven to be difficult to implement. No one right path or solution exists. Instead, EU-level regulation must be supported by a number of measures which belong to the purview of national decision-making. This article provides insights into the discussion on capital markets, which has been ongoing since the signing of the Treaty of Rome in 1957.
  • Kauko, Karlo; Manninen, Otso; Saada, Adam; Tiililä, Nea (2021)
    Bank of Finland Bulletin. Analysis
    Due to climate change, extreme weather events will become more frequent, resulting in material damage to buildings and other infrastructure. In Finland, for example, this will probably increase the risk of coastal floods. Many of the properties used as loan guarantees are located in coastal areas, meaning collateral worth hundreds of millions of euros will probably be exposed to coastal flood risks. The problem will also be exacerbated in the future by the shift of population and economic activity from the interior regions to coastal areas.
  • Bank of Finland (2021)
    Bank of Finland Bulletin. Analysis
    The recovery of the Finnish economy from the COVID-19 crisis has been boosted by stronger-than-expected developments in the second half of 2020. Economic growth in 2021 is expected to be higher than projected in the December 2020 forecast, despite the worsening of the pandemic in the early months of the year. The forecast is based on the assumption that as vaccination coverage increases, society can be opened, and economic growth will gather pace. The economy will continue to recover in 2022, but in 2023 growth will slow to a rate enabled by the structures of the economy.
  • Bank of Finland (2020)
    Bank of Finland Bulletin. Analysis
    According to the Bank of Finland’s assessment, Finnish GDP will contract by 4.7% in 2020 and grow at an annual rate of 2–3% in 2021–2022. Even though the recession appears to be shallower than feared in the spring, it is still deep, and recovery will be slow. Employment threatens to weaken for a protracted period, and the global recession is overshadowing the outlook for exports. Uncertainty stemming from the coronavirus pandemic will remain high, both in the global economy and in Finland. The risks of weaker-than-projected developments are still considerable and relate, in particular, to failure in preventing the spread of the virus.
  • Bank of Finland (2021)
    Bank of Finland Bulletin. Analysis
    The Finnish economy strengthened faster than expected in the course of spring and summer 2021. For the year as a whole, the interim forecast of September 2021 projects stronger economic growth than the June forecast. The major uncertainties surrounding the forecast in the immediate years ahead relate to the progress of the pandemic both in Finland and globally. While robust economic growth will continue in 2022, the rate of growth is expected to taper off towards the end of the forecast horizon in 2023 and resume its long-term growth path.
  • Kajanoja, Lauri (2017)
    Bank of Finland Bulletin. Analysis
    How should we measure cost-competitiveness in Finland? A look at cost-competitiveness indicators in use at the Bank of Finland.
  • Koskinen, Kimmo; Laakkonen, Helinä (2018)
    Bank of Finland Bulletin. Analysis
    Financial markets saw volatility rise as stock markets underwent a correction in February 2018. Low risk premia and high valuations have increased global securities markets’ exposure to price corrections and abrupt shifts in risk premia. Other risks to global stability that are of particular concern to Finland include vulnerabilities related to the euro area's banking sector and the sustainability of the region's public finances, as well as risks associated with Sweden's housing market.
  • Koskinen, Kimmo; Laakkonen, Helinä; Putkuri, Hanna; Tölö, Eero (2018)
    Bank of Finland Bulletin. Analysis
    Due to the interconnectedness of the Nordic real economies and financial systems, an extensive materialisation of risks on the Swedish housing market could also have notable effects in the other Nordic countries. The risk-bearing capacity of the Nordic financial system and public finances has remained good. The countries do, however, share some structural vulnerabilities, including a large and concentrated banking sector, considerable household indebtedness and the major role of housing loans in the financial system as well as banks’ dependence on market funding.
  • Obstbaum, Meri; Sariola, Mikko; Viertola, Hannu; Lindblad, Annika; Nuutilainen, Riikka; Pönkä, Harri; Kokkinen, Arto; Jalasjoki, Pirkka (2020)
    Bank of Finland Bulletin. Analysis
    The corona pandemic will drive the Finnish economy into recession this year along with the rest of the world. The depth of the recession is so far very difficult to assess, as it is not yet known how the corona pandemic will develop from now on, what measures will be taken to fight the pandemic and what economic policy measures will be put in place to mitigate the effects of the recession.
  • Harju, Anja; Snellman, Heli (2021)
    Bank of Finland Bulletin. Analysis
    Cash, banknotes and coins, is a familiar means of payment for everyone. The use of cash as a means of payment has declined and the use of cards has increased over the last twenty years. The coronavirus crisis has further reduced the use of cash, perhaps permanently. Even so, cash is still an important means of payment for many Finns. Cash also has some special features that electronic payment methods lack. In addition, cash is required as a fall-back in the event of disruptions in payments. Cash must be available and it must be possible to use cash for as long as people need and want it.
  • Paavola, Aleksi (2016)
    Bank of Finland Bulletin. Analysis
    Following the financial crisis and the subsequent decrease in economic growth, major central banks have cut interest rates close to zero and introduced non-standard policy measures, such as outright asset purchases, to stimulate the economy. What are the theoretical foundations of these policies and what do we know about their effects on financial asset prices?
  • Karjanlahti, Kristiina (2015)
    Bank of Finland Bulletin. Analysis
    The international use of the renminbi for payments, investments and reserves has grown significantly. Following its increased influence, the IMF will still this year consider adding the renminbi as a SDR basket currency. For China the entry of the renminbi into the SDR basket is a clear political objective. It will be an indication of its stronger role in the global economy. On the other hand, for the IMF it will be critical to guard the credibility and usability of the SDR. This will require that any SDR-basket currency is freely usable and fulfils the operational requirements. Now it will be for the IMF Board to judge whether the renminbi is sufficiently widely used and traded to be deemed as “freely usable”.