FINFSA said financial sector has so far withstood Covid effects on interest rates well.
However, the operating environment for various companies remains uncertain.
The economic downturn and pandemic affect different actors with different intensity.
Several public and private sector actions have supported the real economy e.g. FSB's macro-prudential decisions have maintained lending and recommendation to refrain from profit-sharing has strengthened the risk-bearing capacity of financial actors.
Installment breaks granted by banks have eased situation for households and businesses whereas monetary and fiscal policy has also been accommodative.
Finnish economy is forecast to recover from H2 2020 but uncertainty, risks still high.
In fact, exceptionally high; in most recent risk assessments, ESAs have assessed risk level to be either high or very high; thus even more important all actors assess risks.
Providers of investment services must take into account risks related to exceptional market situation when offering their services, especially to retail clients.
Loss resilience of banking sector remains strong, uncertainty related to development of the pandemic and wide-ranging repayment freedoms weaken visibility to credit risks.
Solvency of life insurance sector withstood market changes well whereas solvency of non-life insurance companies is good although it weakened compared to 2019-end.
Risk-bearing capacity of employment pension institutions remains at a reasonable level despite weakened solvency; situation of unemployment funds changed dramatically in the spring and the situation improved during summer.