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Finance Finland FFI > News > The financial sector’s capital position remains strong

The financial sector’s capital position remains strong

The Finnish banking sector’s capital position is significantly stronger than the European average, shows the Finnish Financial Supervisory Authority’s (FIN-FSA) press release. According to information from the end of September, the banking sector has a strong capital position and the insurance sector a good solvency position.

According to the FIN-FSA, the banking sector's Common Equity Tier 1 (CET1) capital ratio improved in July–September and was 20.6% on 30 September 2017. The banking sector's total capital ratio increased to 23.0% in the same period.

"The Finnish banking and other financial sectors are on stable ground. This is important because only a sound financial system can offer full support to promoting the economy and employment," says Veli-Matti Mattila, chief economist at Finance Finland.

The Finnish employee pension sector's solvency position improved thanks to a good level of investment return. In January–September, the investment return for employee pension institutions was 5.8%. The life insurance sector's solvency ratio also remained good.

The Finnish Financial Supervisory Authority's press release