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Finnish banking crisis of 1990s : ウィキペディア英語版 | Finnish banking crisis of 1990s
The Finnish Banking Crisis of 1990s was a deep systemic crisis of the entire Finnish financial sector that took place mainly in the years 1991–1993, after several years of debt-based economic boom in the late 1980s. Its total taxpayer cost was roughly 8% of the Finnish GNP, making it the most severe of the contemporary Nordic banking crises. The crisis has been attributed to a combination of macro-economic turbulence, weak regulation, and bank-specific problems.〔Liisa Halme: (The 1990s banking crisis in Finland: main causes and consequences, lessons for the future ). 2002.〕 Governmental intervention included bank takeovers, direct monetary assistance and temporary blanket guarantees to the banks.〔(Managing the banking crisis: The Finnish banking crisis of the 1990s and its management ). Finnish Ministry of Finance.〕 ==Background== Until the 1980s, the Finnish financial market was tightly regulated: the Bank of Finland controlled interest rates, foreign exchange rates, and import and export of currency. High interest rates caused a chronic excess in potential demand vs. available supply of debt. Thus, interest rates were relatively high (Helibor ca. 10-15%〔http://www.suomenpankki.fi/fi/julkaisut/selvitykset_ja_raportit/yleistajuiset_selvitykset/historiallisia_aikasarjoja/pages/default.aspx〕), the so-called ''Suomi-lisä'' "Finland surchange" versus foreign less regulated markets. In the early 1980s the financial market was mostly deregulated, leading to a massive credit expansion largely based on foreign debt. Soaring stock and real estate prices attracted frantic speculative activity by banks, private companies and individual investors. Banks aggressively expanded their borrowing in foreign currency, including even banks such as Osuuspankki or the Säästöpankki group that did not do that earlier.〔 For this, the period of the late 1980s is colloquially known in Finland as ''kasinotalous'' ('casino economy').
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