Bank of Estonia head: resilience of private banks good, a few risks remain ({{commentsTotal}})

Bank of Estonia Governor Ardo Hansson Source: Photo: Postimees/Scanpix

Bank of Estonia Governor Ardo Hansson said the health of private banks in Estonia is good, but there are three risk areas.

In an interview to Postimees, Hansson said private banks operating in Estonia have a very strong capital base, loans are backed by own funds, not by loans from abroad, an opposite situation compared to the boom period before 2008, the proportion of sour loans is low and profitability high.

He said private banks face three risks, including the export orientated Estonian economy, which translates into economic vulnerability, the connection to Scandinavia, meaning that if real estate prices fall there, especially in Sweden, it affect banks in Estonia, while the third risk is the nation's own real estate market, which saw the highest growth rate in Europe only six months ago.

Editor: J.M. Laats

+{{cc.replyToName}} {{cc.body}}
No comments yet.
Logged in as {{user.alias}}. Log out
Login failed

Register user/reset password

Name needs to be fewer than 32 characters long
Comment needs to be fewer than 600 characters long

Independence Day: Estonia’s way into the future isn’t a race

There is a lack of connection between the Estonian state, and the people who live here. While it expects a lot of the state, Estonian society doesn’t seem ready to contribute, writes Viktor Trasberg.

Lotman: Security academy would be crucial Estonian identity point in Narva

In an opinion piece published by Eesti Päevaleht, Tallinn University professor Mihhail Lotman found it important to overcome the mental barrier separating Ida-Viru County from the rest of Estonia.