Erkki Liikanen: Financial Markets and Regulations
Today we had the honor of having Erkki Liikanen, the governor of Bank of Finland, at the University of Vaasa. He held an open lecture about the financial markets.
|The graph shows the steady state economic growth rates with dots and the actual growth with the red line. Between them we can see a blue area - the lost opportunities.|
|Macroprudential policy and financial union in context.|
The financial crises widened our understanding of banks' excessive short-term funding and underestimation of the risks - especially systematic risks. Further, Liikanen noted that the banks haven't yet returned to the same profitability that they had before the financial crises. At the same time banks meet new competition.