## Finland: Financial System Stability Assessment

_IMF Staff Country Reports, December 7, 2016_

## Source details

**Canonical URL:** [Finland: Financial System Stability Assessment](https://www.imf.org/en/publications/cr/issues/2016/12/31/finland-financial-system-stability-assessment-44437)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/finland-financial-system-stability-assessment-44437/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/finland-financial-system-stability-assessment-44437/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/finland-financial-system-stability-assessment-44437/bundle-manifest.json)

## Bibliographic details
- Published: December 7, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475558456.002

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### 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.

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## Content in this bundle

- **Finland: Financial System Stability Assessment; 2016 International Monetary Fund; November 8, 2016**
  - [Finland: Financial System Stability Assessment; 2016 International Monetary Fund; November 8, 2016 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2016/_cr16370.pdf.md){rel="alternate" type="text/markdown"}
  - [Finland: Financial System Stability Assessment; 2016 International Monetary Fund; November 8, 2016 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2016/_cr16370.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/finland-financial-system-stability-assessment-44437_