The banking sector in Estonia earned net profit of 285 million euros in 2019, which was one fifth less than in the previous year. The main reason for this was structural changes in the banking market. The net interest income and net... more
With inflation remaining low, expectations for it falling and the economy in the euro area staying weak, the Governing Council of the European Central Bank decided at its meeting in September 2019 to ease monetary policy with a varied package of measures. One of these measures was that monthly... more
Corporate debt grew faster last year, at a rate that reached around 6% at the end of the third quarter. Estonian companies again borrowed mostly from banks operating in Estonia, but they also used other sources of loans more than they... more
The housing loan market remained active in November 2019. Although growth has been seen to slow in the economy of late, labour market conditions continue to favour workers. Rapid growth in wages has kept confidence high and demand for... more
The countercyclical capital buffer is intended to protect the banking sector against losses that could be caused by cyclical systemic risks. Countercyclical capital buffer requirement requires banks to add capital at times when credit is growing rapidly so that the buffer can be reduced when the... more
A little less was issued in new long-term loans and leases to companies in October than on average over the past year. This suggests that demand for loans is a little weaker. As corporate confidence has faded noticeably, companies may be... more
The latest financial stability review from Eesti Pank indicates that risks to the financial sector are small. The probability has increased though of the cooling economy making it harder for businesses to make their loan payments.
Governor of Eesti Pank Madis Müller said that the risks... more
Borrowing has become a little more expensive for companies and for house buyers. The average interest rate on corporate loans was 3.5% in September, which is the highest of recent years. The average interest rate on housing loans was 2.6... more
The aim of the other systemically important institutions buffer is to increase the resilience of systemically important market participants. Their importance may stem from their size, their complexity or their interdependence with other participants in the financial system.
In 2018 Eesti... more