Black_Adder
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"..The interest margins of new housing loans shrank slightly and reached 1.4% in December 2014. The margins have more or less doubled since 2011.6 Despite this, Finns pay extremely low interest rates for housing loans compared to the euro area average. The average interest rate was 1.6% in Finland and 2.8% in the euro area..
Proportion of long-term funding grew
Approximately 61% of Finnish banks’ funding comes from non-MFI deposits, but there is much variation between credit institutions: some fund their operations entirely with deposits, while others do not take any deposits. In 2014, non-MFI deposits grew by about 3.7% compared to the previous year and totalled €151bn in December. More than half of these were households’ deposits, which totalled about €81bn. Proportionally the amount of deposits shrank slightly as a source of funding while long-term bonds grew compared to 2013.
The portfolio of bonds issued by credit institutions grew by 8% during 2014, reaching €97bn. Covered bonds comprised €29bn of the portfolio.
Bonds with a maturity period longer than one year were the fastest growing source of funding. Short-term bonds (maturity less than one year) only made up less than 10%. Their proportion has been decreasing for several years now. By favouring longer average maturities in funding, banks prepare for upcoming regulation that requires more long-term funding in proportion to granted loans. Basel III net stable funding ratio (NSFR) requirements potentially enter into force in Europe in 2018..."
http://www.finanssiala.fi/en/material/Finnish_Banking_2014.pdf#search=mortgage
Also: they have a 'usury' law and there are lots of EU countries with caps on mortgage interest rates ...except Ireland [ 3rd world country] is NOT one of them
Proportion of long-term funding grew
Approximately 61% of Finnish banks’ funding comes from non-MFI deposits, but there is much variation between credit institutions: some fund their operations entirely with deposits, while others do not take any deposits. In 2014, non-MFI deposits grew by about 3.7% compared to the previous year and totalled €151bn in December. More than half of these were households’ deposits, which totalled about €81bn. Proportionally the amount of deposits shrank slightly as a source of funding while long-term bonds grew compared to 2013.
The portfolio of bonds issued by credit institutions grew by 8% during 2014, reaching €97bn. Covered bonds comprised €29bn of the portfolio.
Bonds with a maturity period longer than one year were the fastest growing source of funding. Short-term bonds (maturity less than one year) only made up less than 10%. Their proportion has been decreasing for several years now. By favouring longer average maturities in funding, banks prepare for upcoming regulation that requires more long-term funding in proportion to granted loans. Basel III net stable funding ratio (NSFR) requirements potentially enter into force in Europe in 2018..."
http://www.finanssiala.fi/en/material/Finnish_Banking_2014.pdf#search=mortgage
Also: they have a 'usury' law and there are lots of EU countries with caps on mortgage interest rates ...except Ireland [ 3rd world country] is NOT one of them