Browsing by Subject "risks"

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  • Bank of Finland (2020)
    Bank of Finland. Bulletin 5/2019
    Uncertainty in the global economy poses a substantial risk to the Finnish growth outlook. In 2019, growth in the main export markets has been slower than previously expected, and uncertainty factors may cause further slower-than-expected developments. If materialised, the risks would particularly affect the exports of a small open economy such as Finland. This alternative scenario analyses the transmission of a temporary dip in Finnish export demand to different segments of the economy. The alternative scenario has been prepared using the Bank of Finland’s dynamic general equilibrium model Aino.
  • Bank of Finland (2018)
    Bank of Finland. Bulletin 2/2018
    Rising household debt poses risk to the economy 3 Financial stability: Lowering the loan cap will reduce the risks associated with debt 5 Wide regional disparities in Finnish house prices and household indebtedness 20 The Finnish real estate investment market 27 Household indebtedness contributing to corporate loan losses 37 Instruments designed to mitigate indebtedness 47 Progress in work to complete Banking Union 53 Nordic banks go digital 60 Systemic risk buffer protecting the banking sector under difficult conditions 68 Effects of the revised Payment Services Directive: first assessment 72 Digitalisation poses new security challenges for payment systems 76
  • Bank of Finland (2019)
    Bank of Finland. Bulletin 2/2019
    Table of Contents Editorial: Rising household debt levels must be addressed in time 3 Financial stability: Debt must be measured against repayment capacity 6 The highly indebted cut spending as the economy slows 25 Capping debt-to-income ratios complementary to housing loan cap 34 New methods needed to rein in consumer credit 41 Corporate credit risk affected by business cycles and industry factors 47 Finnish commercial property market increasingly intertwined with foreign markets 57 The impact of digitalisation on bank profitability 66
  • Bank of Finland (2020)
    Bank of Finland. Bulletin 2/2020
    Editorial: Regulation has strengthened the financial system’s resilience 3 Financial stability assessment: Pandemic demonstrates necessity of risk buffers 6 Coronavirus shock will further weaken bank profitability in the euro area 19 Banks must be able to finance firms and withstand loan losses amid the coronavirus pandemic 24 Nordic countries are vulnerable to housing market risks aggravated by the coronavirus pandemic 35
  • Koskinen, Kimmo (2016)
    Bank of Finland. Bulletin 2/2016
    The year got off to an uncertain start for the European banking sector, and market turbulence was strong in the first half of 2016. The uncertainty has reflected increased concerns about the growth prospects for the global economy. Rising credit risks in the energy sector, weak market liquidity and uncertainty about monetary and economic policies’ ability to support economic growth have increased market volatility. Uncertainty over global growth prospects has also focused strongly on the banking and financial sector, which is particularly sensitive to changes in the economic outlook. Although the profitability and liquidity position of the European banking sector has improved on average in recent years and capital adequacy has advanced, the banking business is facing numerous risks both in the short and the long term. Banks' long-term profitability and the sustainability of their operating models have been singled out as special causes for concern.
  • Kaaresvirta, Juuso; Kerola, Eeva; Nuutilainen, Riikka (2021)
    BOFIT Policy Brief 13/2021
    China’s real estate and construction sector has served as a major engine of economic growth in recent decades and the sector now plays an oversized role in the economy. Much of that growth has been debt-fuelled, with the indebtedness of developers climbing to unprecedented levels. After officials turned off the money spigot last year, housing markets cooled and a wave of financial difficulties washed over builders during autumn 2021. The entire sector found itself under heavy stress, and in December two major developers, Evergrande and Kaisa, defaulted on their offshore debt. In this brief, we consider the current conditions in China’s real estate and construction sector and how a possible sectoral crisis could spread to the national economy and the euro area. While the direct financial impacts on the euro area’s financial sector is likely to be minor, China’s real estate sector problems could spill over widely into the domestic real economy and thereby increase uncertainty internationally. In such case, the indirect impacts on the euro area could be severe.
  • Bank of Finland (2015)
    Bank of Finland. Bulletin 5/2015
    Growth in corporate investment and exports is expected to be reflected in slowly improving output in the immediate years ahead. Nevertheless, owing to increased uncertainties in the global economy, there is a possibility that exports will not yet begin to rebound. On the other hand, the pick-up in domestic investment may be jeopardised if competitiveness problems cannot be resolved and the high degree of uncertainty surrounding fiscal consolidation persists. For these reasons, another possibility is that economic activity in the immediate future will be weaker than forecast.
  • Kauko, Karlo; Topi, Jukka; Vauhkonen, Jukka (2014)
    Bank of Finland. Bulletin. Financial stability 2
    The countercyclical capital buffer requirement is one of the new macroprudential instruments that will come into use in Finland. It enables the strengthening of the banking sector’s resilience to systemic risks resulting from excessive credit growth. In setting the requirement, strong emphasis should be placed on a small range of indicators to be selected, defined and published in advance. In contrast, reducing or releasing the buffer should primarily be based on judgment by the relevant authorities.
  • Leinonen, Harry; Saarinen, Veikko (1998)
    Bank of Finland studies. A 101
    Regulation and control of payment system risks can be justified by the fact that, since payment Systems are an integral part of the financial sector infrastructure, disturbances therein can spread widely through the society.The payment system risks that need to be controlled are classified here in the following basic categories: credit risks; liquidity risks; environment risks; clearing and settlement risks; and operating risks.Payment systems subject to supervision are categorized by the payment media used, so that the risk profiles within in each category are as uniform as possible.The report also discussed means of reducing payment system risks. The report scrutinizes in particular the risks inherent in Finnish payment and settlement systems.In Finland overall payment system regulations and norms are based on legislation governing credit institutions, the Bank of Finland and the Financial Supervision Authority as well as on self-regulation.The Bank and the Financial Supervision Authority are jointly responsible for the supervision of Finnish payment systems.The Bank is responsible for controlling systemic risk and for overseeing payment systems as a whole, and the Financial Supervision Authority supervises and monitors individual credit institutions in respect of payment system risks. Because risks are constantly changing, regulation and supervision of payment systems need to be continually updated.As the new operating environment including the European Central Bank and the ESCB unfolds, new features will mark the supervision of payment systems and in general we will see more intense international cooperation in the area of payment systems.
  • Bank of Finland (2015)
    Bank of Finland. Bulletin 3/2015
    Weaker-than-expected developments in the global economy would erode Finland’s export-driven growth. On the other hand, a more prolonged period of low commodity prices and the positive effects of accommodative monetary policy on the real economy could provide a further boost to growth. In Finland, the necessary consolidation measures will reduce domestic demand over the short term but may support growth over the longer term.