During downturns and disruptive situations in the economy, it is more important than ever that financial intermediation remain stable and efficient. In view of the difficult operating environment and the vulnerabilities of the Finnish financial system, it is important to strengthen the resilience of banks.
Increasing structural macroprudential buffers from the levels to which they had sunk during the pandemic was begun in Finland in June 2022. Due to the uncertain economic outlook, decisions to tighten macroprudential policy must be taken with care and on a gradual basis so that procyclical effects can be avoided. [Slide 18.