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 Finland’s financial system has remained stable despite the economic recession

Finland’s financial system has remained stable despite the economic recession, the Bank of Finland said on Tuesday.

Risks have been controlled, particularly as a result of the long-term improvements made to financial regulation and supervision, and macroprudential policy measures taken, the bank said.

The resilience of Finland’s financial system “has remained robust,” said Bank of Finland Deputy Governor Marja Nykanen.

However, Nykanen added that geopolitical tensions have increased, and “this could create new threats to financial stability.”

The domestic risks of the financial system have also increased due to a standstill in the housing and real estate markets, and considerable sensitivity to interest rate movements, the bank said.

The resilience of banks and borrowers to economic shocks must be strengthened, the bank suggested. ■

Famagusta Gazette