the fin - fsa is the national macroprudential authority. staff analysis and policy proposal, serving the decision making, are prepared jointly by the fin - fsa and the bank of finland. the bank of finland, the ministry of finance as well as the ministry of social affairs & health are asked to express their opinions on the fin - fsa director general ’ s regular quarterly policy proposals. all these institutions have also possibility to make initiatives of their own for the consideration of the board of the fin - fsa regarding the use of macroprudential tools. finnish economy and its outlook finland is a small open economy with a very good growth record in the long term. however, economic growth in finland has now been slow for a prolonged period, both historically and by international comparison. finnish exports have suffered a considerable loss of market share since 2009, the most severe year of the recession. bis central bankers ’ speeches according to the last bank of finland forecast finland will not soon catch up with the recovery foreseen in the other euro area countries. growth has been depressed by cyclical, sectoral and structural problems. the labour market situation has deteriorated rapidly during the past year. unemployment is now higher than in the recession year 2009, the unemployment rate standing at around 9. 5 %. over the past 5 years there has been a soft, if lengthy landing in the finnish housing market, reflecting the protracted period of slow economic growth. the regional divergence, driven by both demand and supply - side factors, in house prices and household indebtedness is wide. growth areas, mainly the biggest cities with universities, are characterised by increasing population, younger residents, a better employment situation and higher household income than the national average. this is also reflected in housing markets, as higher house prices and larger housing loans in these areas. at current juncture, our financial cycle is lackluster. as required by legislation, we have made quarterly decisions on countercyclical capital buffer since the beginning of 2015. this has enabled us to gain some practical lessons on how macroprudential analysis is done and how the decision making with respect to financial cycles is managed. lessons learned the diversity in economic history, the economic outlook and in the local conditions justifies the importance of national discretion in macroprudential policy making also in a monetary union. however, one should go even deeper than the national level into the regional and sectoral differences. for example, we could foresee that urbanization

partnerships. all stakeholders should be encouraged to consider and implement international principles, guidelines and good practices developed by the oecd and the international network for financial education ( infe ) in the financial education field. it is not possible to overestimate the importance of financial literacy and financial education. literacy and education are the essence of building confidence. without confidence there is no financial stability. persistence, systematical and inclusive approach, innovative, userfriendly and technologically advanced methods used – all of these should be the properties of a far - reaching, effective and long run effort in financial literacy and education. as some wise people rightfully noted : it might be costly but undoubtedly priceless. bis central bankers ’ speeches