Featured Product

    IMF Reports on 2019 Article IV Consultation with Finland and Estonia

    January 22, 2020

    IMF published reports under the 2019 Article IV consultations with Finland and Republic of Estonia. These IMF reports assess, among other areas, the soundness of financial sectors in these countries. The IMF assessment shows that banking systems in both Estonia and Finland remain healthy and well-capitalized.

    Staff and selected issues reports on Finland. The financial system is sound, with the banking system being well-capitalized and profitable. However, extra measures are needed to address vulnerabilities of borrowers. While Finnish banks are highly exposed to real estate, residential and commercial real estate markets are not obviously overvalued. The recent recommendation to limit the ratio of household debt to income (DTI) is in line with the steps taken in many other countries. A government appointed working group has recommended a comprehensive cap on the DTI ratio, limits on the indebtedness of housing companies, and shortening the maximum maturity of mortgages and housing company loans. The assessment concludes that additional steps could be taken to address financial risks, especially those associated with the increase in housing company and consumer loans. Moving forward to establish the planned comprehensive positive credit registry and stepping up data collection on loans from outside credit institutions is important to limit the possibility of cheating by loan applicants and would also help to assess the increase in consumer credit from the increase in “peer-to-peer” and other non-bank loans. Replacing the loan-to-collateral ratio for mortgage loans by a loan to value cap would further strengthen the macro-prudential toolkit.

    Staff and selected issues reports on Estonia. In Estonia, the banking sector is sound, non-performing loans have been low, liquidity coverage ratios are above the regulatory minimum requirements, and banks have ample capital buffers. Macro-prudential policies are appropriate and risks are contained, but continued monitoring is warranted. Directors underscored that macro-prudential policies should contain financial-sector risks that could arise from the low interest rate environment. They encouraged the authorities to continue to monitor broader macro-financial developments, especially real estate and housing related risks, while enhancing the macro-prudential toolkit and standing ready to act, should risks materialize. 

     

    Related Links

    Keywords: Europe, Finland, Estonia, Banking, Article IV, Macro-Prudential Policy, Macro-Prudential Tools, Systemic Risk, NPLs, IMF 

    Featured Experts
    Related Articles
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    News

    PBC Issues List of Systemic Banks, Adds 2 Foreign Banks to CERB List

    The China Banking and Insurance Regulatory Commission (CBIRC) published the administrative measures for internal control of wealth management companies, which come into force on the day of promulgation.

    September 09, 2022 WebPage Regulatory News
    News

    PRA Publishes Discussion Paper on Its Future Approach to Policy

    The Prudential Regulation Authority (PRA) proposed its approach to policy-making as it takes on wider rulemaking responsibilities under the Financial Services and Markets Bill.

    September 08, 2022 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposed Regulation on Data Act

    The European Central Bank (ECB) published its opinion on the proposal for a regulation on harmonized rules on fair access to and use of data (Data Act).

    September 08, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8511