Financial Stability Review 1/2020

Financial stability in Estonia has been affected in the first months of this year by the spread of the coronavirus. COVID-19 infections have increased rapidly and the illness has become a pandemic. Efforts have been made to prevent a healthcare crisis by limiting the spread of the virus with broad restrictions that have affected the operations of business and the consumption and incomes of households. The financial system has an important role to play in coping with these restrictions and adapting to the new circumstances. Although financial institutions are suffering notable losses because of the unfavourable economic events, it is extremely important that the financial sector manage to continue supporting the economy effectively to reduce the damage from the crisis.