Expert: Finnish bank accounts are safe
“Bank deposits safe, economy on track, employment improving, inflation is a concern”
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Monday’s upheaval on Wall Street, following the bankruptcy filing by Lehman Brothers, had reverberations on markets around the world, and in Finland as well. While the events pushed down stock market prices in Helsinki, experts say that the money in Finnish bank accounts is safe.
Reijo Karhinen, Director-General of the OP-Pohjola group, was asked by Helsingin Sanomat what the implications of the situation are for the deposits of ordinary bank customers.
“The customers of Finnish banks do not have any reason to worry on the basis of Monday’s news. The crisis originates in the investment banks. The retail banking side is not affected much. Finland has a strong retail banking system and the customer can be calm.”
What will happen with housing loans? Will interest rates go up?
“Monday’s events will add pressure to raise margins. This is caused by the fact that the price of money used for extending credit is going up. On the other hand, pressures are high for a general decline in the interest rate, which would, for its part, ease the situation of home loan borrowers.”
Can people still get housing loans?
“Yes, but the price might be a bit higher than before.”
Will Finnish banks go under?
“This second wave of the financial market crisis will test which ones can withstand it, and which ones will fall. Finnish banks will hold up, because they are in very good condition.”
Should people prepare for the worst?
“There will still be plenty of bad news from around the world. It is most important for people to examine matters from the point of view of their own situations. If a person feels that his or her situation has not changed at all, then there is no point in thinking about anything else. That is perhaps the most important basis of knowledge.”
Will Finland go into a depression?
“No. Employment development is positive, the number of jobs is growing, and the foundation of the economy is healthy. Economic growth will slow down significantly, but few households will notice it in their own lives. What will be seen, naturally, is a terribly high inflation.”
More on this subject:
 Limited impact of Lehman Brothers bankruptcy on Finnish investors and bank customers
Reverberations of Wall Street felt on trading floor of Finnish bank
Helsingin Sanomat
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