Bank crisis makes Finns nervous

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The banking crisis that has hit Europe is a matter for concern for customers visiting bank branch offices in the centre of Helsinki. Staff are being asked increasingly detailed questions about the effects of the crisis. Customers also want information on securing their deposits and investments.
      “I have talked about the banking crisis with nearly every customer. Many want confirmation for their own vies, and additional information about deposit protection”, says Patricia Lindman, investment advisor at the Nordea Bank branch office at Senate Square in the centre of Helsinki.
      “If a customer does not have an immediate need for cash, Lindman advises them not to do anything, and to wait.
      “Customers have not spoken about a possible recession. It seems that most are aware about the reasons of the crisis.”
      Half an hour before closing time, the atmosphere at the Senate Square office of Nordea was calm, and there was only a handful of customers.
     
“Full house”, is how Harri Laitinen, head of services at the Mikonkatu office of OP Bank describes the situation. He says that customers can roughly be divided into three groups: those who want additional information about the crisis, those who are dispersing their assets to different banks in case the worst happens, and bargain hunters who are taking advantage of low share prices on the stock market.
      “Customers are clearly nervous. The greatest concern involves deposit protection and the security of deposits. The situation with Kaupthing Bank has increased inquiries”, Laitinen says. He believes that customers now appreciate the stability of Finnish banks.
      “We are clearly getting more money in than is going out.”
      The Financial Supervision Authority and the country’s leadership have emphasised repeatedly over the past couple of weeks that Finnish banks are not in difficulty because of the credit crunch.


Links:
  Financial crisis: Banks in Finland and elsewhere raise deposit protection limit (9.10.2008)

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