Financial sector capital position as at 30 September 2022: Gloomier outlook for operating environment highlights importance of solvency, risk management and internal control8.12.2022 11:00:00 EET | Finanssivalvonta
The outlook for the Finnish financial sector's operating environment has become increasingly gloomy during the autumn. Weakening economic growth, high inflation and energy prices as well as rising interest rates are straining the ability of households to service their debts and consume, and are eroding business profitability. This increases the risk of significant investment losses and loan losses and also weakens the profitability outlook for the Finnish financial sector. In an environment of elevated risks, the strong risk-bearing capacity and preparedness of supervised entities is increasingly important.