Olli Salmi, 9 Oct 2020
Banks' capital requirements have been increasing since the financial crisis. The purpose of additional capital is to increase stability by reducing lending risk. A working group appointed by the Finnish Ministry of Finance has now proposed that the authorities should have the power to raise various additional capital requirements related to systemic risks by several percentage points. It could mean a reduction of tens of billions of euros in lending capacity, which does not align with the plans to help the economy recover after the coronavirus crisis.