Financial market report 2/2012
(20.11.2012)
Numero
2/2012Julkaisija
Bank of Finland
2012
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201408075162Tiivistelmä
1 FINANCIAL INTERMEDIATION 4
1.1 Lack of confidence increased capital movements in Italy and Spain 4
Kristiina Karjanlahti and Kimmo Koskinen
1.2 Diverging developments in euro area housing markets 8
Hanna Putkuri
1.3 Financial crises often preceded by excessive indebtedness in the economy 10
Eero Savolainen
2 BANKS AND INSURANCE COMPANIES 12
2.1 Solid capital adequacy and improved profitability in domestic banking sector 12
Eero Savolainen
2.2 Weaker position for holders of banks' unsecured bonds 14
Pertti Pylkkönen
2.3 More stringent capital requirements for banks support economic growth 16
Jarmo Pesola
3INFRASTRUCTURE 19
3.1 TARGET2-Securities moving ahead on schedule 19
Risto Koponen
3.2 European Central Bank examined costs of retail payments 21
Kari Kemppainen
3.3 Innovations in electronic mediums of exchange 22
Eero Tölö
4 KEY REGULATORY AND SUPERVISORY INITIATIVES 24
4.1 High-level Expert Group proposes separation of activities within banking
groups 24
Hanna Westman
4.2 Banking union 28
Jyrki Haajanen
4.3 Working group proposes powers for FIN-FSA to limit maximum size of housing loans 29
Jukka Vauhkonen
4.4 Additional capital requirements recommended for domestic systemically important banks 31
Jukka Vauhkonen
LIST OF CHARTS
Chart 1. In Spain, there was an increase in private sector debt, while Italy was burdened by public sector debt 4
Chart 2. Private sector deposit stock has contracted in Spain, but not in Italy 5
Chart 3. Sovereign bonds have shifted from foreign investors to domestic banks 5
Chart 4. Crisis in confidence led to capital flight, but outflows came to a halt Italy in the spring and were reversed in Spain in September 6
Chart 5. Loans to households in the euro area 8
Chart 6. House prices in the euro area 8
Chart 7. Interest rates on new housing loans in the euro area 9
Chart 8. Housing loans and house prices in Finland 9
1.1 Lack of confidence increased capital movements in Italy and Spain 4
Kristiina Karjanlahti and Kimmo Koskinen
1.2 Diverging developments in euro area housing markets 8
Hanna Putkuri
1.3 Financial crises often preceded by excessive indebtedness in the economy 10
Eero Savolainen
2 BANKS AND INSURANCE COMPANIES 12
2.1 Solid capital adequacy and improved profitability in domestic banking sector 12
Eero Savolainen
2.2 Weaker position for holders of banks' unsecured bonds 14
Pertti Pylkkönen
2.3 More stringent capital requirements for banks support economic growth 16
Jarmo Pesola
3INFRASTRUCTURE 19
3.1 TARGET2-Securities moving ahead on schedule 19
Risto Koponen
3.2 European Central Bank examined costs of retail payments 21
Kari Kemppainen
3.3 Innovations in electronic mediums of exchange 22
Eero Tölö
4 KEY REGULATORY AND SUPERVISORY INITIATIVES 24
4.1 High-level Expert Group proposes separation of activities within banking
groups 24
Hanna Westman
4.2 Banking union 28
Jyrki Haajanen
4.3 Working group proposes powers for FIN-FSA to limit maximum size of housing loans 29
Jukka Vauhkonen
4.4 Additional capital requirements recommended for domestic systemically important banks 31
Jukka Vauhkonen
LIST OF CHARTS
Chart 1. In Spain, there was an increase in private sector debt, while Italy was burdened by public sector debt 4
Chart 2. Private sector deposit stock has contracted in Spain, but not in Italy 5
Chart 3. Sovereign bonds have shifted from foreign investors to domestic banks 5
Chart 4. Crisis in confidence led to capital flight, but outflows came to a halt Italy in the spring and were reversed in Spain in September 6
Chart 5. Loans to households in the euro area 8
Chart 6. House prices in the euro area 8
Chart 7. Interest rates on new housing loans in the euro area 9
Chart 8. Housing loans and house prices in Finland 9