Finland: Financial System Stability Assessment
IMF Staff Country Reports, December 7, 2016
Source details
- Canonical URL
- Finland: Financial System Stability Assessment
Other formats
Bibliographic details
- Published: December 7, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475558456.002
Executive summary and key findings
- Finland’s banking system remains well capitalized and profitable.
- 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.
- 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.
- Previously identified vulnerabilities remain, and some have increased.
Financial sector strengths
- Well capitalized banking system.
- Continued profitability supported by:
- Increased income from trading and insurance.
- Reduced cost-income ratios.
- Low levels of nonperforming loans.
Financial sector vulnerabilities and risks
- Net interest income compressed by low interest rates.
- Capitalization buffers may overstate resilience due to aggressive use of risk weights.
- Some previously identified vulnerabilities persist or have grown.
- Aggregate maturity-mismatch vulnerabilities appear limited per the Net Stable Funding Ratio.
Content in this bundle
- Finland: Financial System Stability Assessment; 2016 International Monetary Fund; November 8, 2016