Risk council: economy still in good shape

Key economic figures such as exports, work activity rate, unemployment and wage expenditures remain positive, according to the Systemic Risk Council.

Faroese banks saw a 4.6-percent year-on-year increase in loans in January this year. This increase is predominantly represented by private businesses and households.

Bank deposits from industry clients have increased, but households have not increased their deposits significantly.

This may be due to higher prices and interest-rate hikes, which may force some households to dig into their savings or deposit less money in their bank.

All in all, the risk council says the Faroese economy is in good shape, and it sees no clear signs of systemic risk in the Faroese banking sector.

Learning about first-time homebuyers

In related news, the Systemic Risk Council has set out to learn more about first-time homebuyers.

The number of new homeowners has been on a decline in recent years, partly because the high house prices preventing them from entering the housing market.

The Faroese Systemic Council is working with its Danish counterpart to collect information about how best to assist first-time homebuyers as this group is typically sensitive to interest and price changes because they tend to have a high debt burden.

Read the Faroese versions of this article here and here.

More Faroese News in English.