Like all supervision, stress testing conducted during normal times of solid economic growth and financial stability is aimed at helping ensure banks remain in safe and sound condition. We use it to set the capital buffers, which give firms incentives to hold capital during normal times, so they are prepared to weather downturns.
The growth in labour productivity has not been accompanied by a corresponding increase in the ability of firms to pay higher wages. The main reason for the exceptionally weak price developments is the large share that both paper and electronics industries have had in Finnish manufacturing. Price developments have been exceptional in these two industries.