Appears in:
Europe,
Finance and Banking,
Macro View,
Finland,
Iceland,
Nordics,
Norway,
Sweden,
Banks and Risk Management,
Past Financial Crisis,
Systemic Risk, Vulnerabilities and Asset Bubbles
Critical Issues
Background:
Many Nordic banks have avoided the worst of the global credit crisis, except in Iceland where highly leveraged banking sector collapsed in October 2008. In Finland, banks suffer loan losses, but they are not expected to reach the same scale as during the Finnish financial crisis of the early 1990s. Swedish banking sector is exposed to Baltics, and an increase there in loan losses could hurt Swedish banks. Also Danish banks have have been hit by the financial crisis, while Norwegian banks have fared better.
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