26.05.2020
Raido Kraavik Economist at Eesti Pank

Restrictions introduced because of the coronavirus mean a broad economic downturn is expected this year, and so many companies and households will face difficulties in repaying their loans. To avoid payments becoming overdue, the banks... more

07.05.2020
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... more
06.05.2020

The latest financial stability review from Eesti Pank finds that the banks have sufficient capital buffers even if restrictions remain in place for long time. The central bank estimates that if the restrictions last until August, the share of problem loans will rise to 13% of the loan portfolio... more

28.04.2020

The macroprudential tools available to Eesti Pank can be divided into three groups:

1) Moral suasion measures, with which Eesti Pank can draw the attention of market participants to vulnerabilities in the financial system and so influence their decisions indirectly. This can include... more

28.04.2020

The systemic risk buffer is intended to increase the resilience of the financial sector to non-cyclical risks that could have a serious negative impact on the national financial system or the economy.

The main reason for applying the systemic risk buffer requirement lies in the small... more

24.04.2020
Raido Kraavik Economist at Eesti Pank

The sharp deterioration in the economic environment caused by the emergency situation has affected the market for car leases very fast. Reduced demand for car leases was one of the first signs of the loan market cooling. Momentum meant... more

20.04.2020
The review of financing and lending in the non-financial sector covers banking and leasing statistics, financial accounts analysis and credit supply and demand. It is published once a year.
25.03.2020

Eesti Pank is reducing the systemic risk buffer for the commercial banks from 1% to 0%. This will free up 110 million euros for the banks, which they can use to cover possible loan losses or to make new loans.

“We have required the banks to build up buffers during the good times, and now... more

24.03.2020
Raido Kraavik Economist at Eesti Pank

Eesti Pank today publishes the banking statistics for February, which show how banking and the credit market were functioning before the economy was affected by the spread of the coronavirus. The economic restrictions that have been put... more

23.03.2020

The countercyclical capital buffer is intended to protect the banking sector against losses that could be caused by cyclical systemic risks increasing in the economy. Countercyclical capital buffers require banks to hold capital at times when credit is growing rapidly so that the buffer can be... more

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