Estonian stability report gloomy

The risks to Estonian financial stability have increased of late, notes the latest Financial Stability Report from the country's central bank.

The report notes that although funding by parent banks has stabilised with the support of government and central bank measures, expected loan losses could reduce the capital buffers of the groups of parent banks and this could in turn affect credit supply to Estonia.

The report notes that credit risk is now more likely to materialise as, compared to last

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