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
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
Although the lending market was calmer in January than in the preceding months, some 100 million euros of housing loans were issued. This means that demand for loans was still strong, given that there is usually less borrowing activity in... more
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
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