Bank of Finland warns financial system risks are increasing

Bank of Finland warns financial system risks are increasing

The Bank of Finland says risks to the country’s financial system have grown in 2025, citing global instability, high household debt, and rising digital threats. Marja Nykänen, Deputy Governor of the Bank of Finland, said the domestic banking sector remains stable but faces growing external pressures. These include geopolitical tensions, such as the war in Ukraine, and economic disruptions like new import tariffs imposed by the United States.

The Bank of Finland warns that the high indebtedness of Finnish households and fluctuating interest rates are a vulnerability in the financial system in Finland.