IMF Staff Country Reports

Finland: Financial System Stability Assessment

December 7, 2016

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Finland: Financial System Stability Assessment, (USA: International Monetary Fund, 2016) accessed October 6, 2024

Summary

This paper discusses key findings of the Financial System Stability Assessment concerning Finland. It reveals that Finland’s banking system remains well capitalized and profitable. Although low interest rates have squeezed net interest income, banks have increased income from trading and insurance and reduced cost-income ratios, helping to maintain profitability. Nonperforming loans have remained low and capitalization ratios are well above requirements, though buffers may be exaggerated by the aggressive use of risk weights. The Net Stable Funding Ratio suggests that vulnerabilities from maturity mismatches are limited in aggregate. Nevertheless, previously identified vulnerabilities remain, and some have increased.

Subject: Banking, Commercial banks, Expenditure, Financial crises, Financial institutions, Financial regulation and supervision, Financial Sector Assessment Program, Financial sector policy and analysis, Insurance companies, Liquidity requirements, Loans, Pension spending, Stress testing

Keywords: Africa, Baltics, Commercial banks, Copy, CR, D.C., D.C., Europe, FIN FSA, Financial Sector Assessment Program, FIN-FSA director general, FIN-FSA test, FSAP finding, Global, Insurance companies, International Monetary Fund Washington, International Monetary Fund Washington, ISCR, Liquidity requirements, Loans, Middle East, No. 16/370, Pension spending, Public, Publication service, Report, Staff team of the International Monetary Fund, Stress testing

Publication Details

  • Pages:

    44

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2016/370

  • Stock No:

    1FINEA2016004

  • ISBN:

    9781475558456

  • ISSN:

    1934-7685