Macroprudential decision: Countercyclical capital buffer requirement for banks and the eased housing loan cap to remain unchanged

1.10.2026 09:30:10 EEST | Finanssivalvonta | Investor News

Press release 1 October 2026

The Board of the Financial Supervisory Authority (FIN-FSA) extends the validity of its decision to raise the housing loan cap for loans other than first-home loans, maintaining it at 95%. The cap for loans taken out for the purchase of a first home also remains at its standard level of 95%. Additionally, the Board maintains the countercyclical capital buffer (CCyB) requirement for banks at 0.0% and reciprocates Denmark’s updated sector-specific systemic risk buffer (sSyRB) for Finnish banks’ exposures to Danish real estate companies.

Over the summer and early autumn, the outlook for the global economy has been dominated by the Middle East crisis and the disruptions it has caused in commodity markets. Because of the tense and rapidly changing situation in the Middle East, the economic outlook continues to involve significant uncertainty. In the euro area, however, the economy has developed more favourably than expected, and in September the European Central Bank slightly raised its projection for economic growth this year and next.

The Finnish economy has picked up so far this year. According to the Bank of Finland’s September 2026 interim forecast, the economy will grow by 1.7% this year and by 1.6% next year. In 2028 growth will decelerate to 1.3%. On the other hand, risks are elevated. The FIN-FSA Board is monitoring closely developments in the Middle East conflict and the effects on the stability of the Finnish financial system.

Housing loan cap maintained at its previously raised level

In its previous decision of 29 June 2026, the FIN-FSA Board raised the maximum loan-to-collateral (LTC) ratio for housing loans other than those taken out for the purchase of a first home by five percentage points, to 95%, in order to limit the downturn in the housing market. The decision entered into force on 1 July 2026. On 30 September 2026 the Board decided to extend the validity of that decision.

-In the light of statistical data, the Finnish housing market remains in a downturn. The housing market situation must be monitored carefully, and the temporarily eased maximum LTC ratio should be returned to its standard level of 90% when there are no longer grounds to depart from the standard level,” says Marja Nykänen, Chair of the FIN-FSA Board.

Countercyclical capital buffer requirement for banks maintained at 0.0%

Based on core risk indicators, the risks of an overheating of the financial cycle remain minor. The primary risk indicator – the deviation of the private sector credit-to-gross domestic product (GDP) ratio from its long-term trend – fell in the first quarter of 2026 to the second lowest level so far in the cycle (-21.5 percentage points). Also, the deviation calculated using a narrow definition of the credit stock fell to the lowest level so far in the cycle (-13.1 percentage points). The other risk indicators likewise do not show an increase in systemic risks associated with an overheating of the credit cycle, and therefore the CCyB requirement remains at 0.0%.

Application of Denmark's updated systemic risk buffer to continue

The Danish Ministry of Taxation and Economic Growth (Skatte- og Vækstministeriet), acting as the Danish macroprudential authority, decided on 29 June 2026 to continue the application of a sSyRB requirement of 7% to certain exposures to Danish real estate companies. The updated buffer requirement entered into force on 30 June 2026. Minor changes have been made to the scope of application of the requirement relative to the previous requirement. It is justified to continue applying the requirement also to Finnish credit institutions’ real estate sector exposures in Denmark in order to strengthen the effectiveness of macroprudential policy and ensure a level playing field in the Nordic countries

The Board of the Financial Supervisory Authority assesses on a quarterly basis the short and long-term risks to the stability of Finland’s financial system. If necessary, the Board may tighten or relax its macroprudential instruments for promoting stability. The Board decides on a quarterly basis the level of the countercyclical capital buffer (CCyB) requirement and the level of the maximum loan-to-collateral (LTC) ratio for housing loans. The levels of additional capital requirements for nationally systemically important institutions (O-SII buffers) are reviewed at least annually and the level of the systemic risk buffer (SyRB) at least every second year.

For further information, please contact:

Marja Nykänen, Chair of the Board of the Financial Supervisory Authority, tel. +358 9 183 2007

View this link to access the appendices listed below

• The FIN-FSA Board’s decision on the application of macroprudential instruments (pdf)
• Proposal of the Director General of the FIN-FSA, circulated for comment, on the application of macroprudential instruments (pdf, in Finnish)
• Opinions concerning the Director General’s proposal on the application of macroprudential instruments (pdf, in Finnish)
  • Bank of Finland
  • Ministry of Finance
  • Ministry of Social Affairs and Health

Contacts

• Media phone service number, +358 9 183 5030

About Finanssivalvonta

Finanssivalvonta, or the Financial Supervisory Authority (FIN-FSA), is the authority for supervision of Finland’s financial and insurance sectors. The entities supervised by the authority include banks, insurance and pension companies as well as other companies operating in the insurance sector, investment firms, fund management companies and the Helsinki Stock Exchange. We foster financial stability and confidence in the financial markets and enhance protection for customers, investors and the insured.