FTimes - STT Report, Nov. 13
Photo – Lehtikuva.
S-Bank has forecast that unemployment is set to increase next year by a couple of tens of thousands.
The bank also has forecast that the price of houses will fall and subsequently the sale of houses will decline.
According to the outlook, the interest rates are expected to remain at a lower level.
According to the assessment made by S-Bank and LocalTapiola Group, banks’ competition will increase as a result of mortgage margins going down. Bank accounts or time deposits do not offer excess in returns on inflation. This means that the returns of such kind of investments are negative, when purchasing power is reduced.
Banks should think of wide-ranging structural economic reforms, which will lead to pain and suffering in the first stage, observed the assessment report. The reforms are absolutely essential in order to improve the economic situation, it maintained.
