Sutt, AndresKorju, HelenSiibak, Kadri2012-03-192012-03-192011-10-01https://hdl.handle.net/10986/3599The Estonian economy experienced an unusually long business and credit cycle during the first decade of the 21st century. The magnitude of the cycle tested what can be achieved by traditional policy tools and the limits of macro-prudential policies. The country's financial sector, almost fully consisting of foreign banks, displayed the complexities of cross-border regulation and supervision. Capital and liquidity requirements that were stricter than international minimums, as well as the build-up of fiscal buffers, were instrumental to engineering an orderly adjustment. Openness and integration, including well-advanced cross-border cooperation, were equally important in maintaining financial stability throughout the global financial crisis.CC BY 3.0 IGOAGGREGATE DEMANDARBITRAGEASSET PRICESASSET TRANSFERSBALANCE SHEETBANK LENDINGBANKING SECTORBANKING SERVICESBANKING SYSTEMBASIS POINTSBORROWERBORROWINGBUSINESS CYCLECAPITAL ACCOUNTCAPITAL ADEQUACYCAPITAL ADEQUACY REQUIREMENTCAPITAL BASECAPITAL MOVEMENTSCAPITAL REQUIREMENTCAPITAL REQUIREMENTSCAPITALIZATIONCENTRAL BANKSCOLLATERALCONSOLIDATIONCONSUMER CREDITCONSUMER LOANSCONSUMER PROTECTIONCONTINGENT LIABILITIESCONVENTIONAL MORTGAGECORE BUSINESSCORPORATE FINANCINGCREDIT EXPANSIONCREDIT GROWTHCREDIT LOSSESCREDIT MARKETCREDIT PRACTICESCREDIT QUALITYCREDIT RISKSCROSS-BORDER COOPERATIONCROSS-BORDER ISSUESCURRENCYCURRENCY BOARDCURRENCY BOARD ARRANGEMENTDEBTDEBT SOURCEDEFICITSDEPOSITDEPOSIT GUARANTEEDEPOSITORSDEPOSITSDISPOSABLE INCOMESDOMESTIC DEBTDOWN PAYMENTE-BANKINGECONOMIC CONDITIONSECONOMIC DOWNTURNEESTI PANKEUROPEAN CENTRAL BANKEXPENDITURESEXPOSUREEXTERNALITIESFINANCE MINISTRIESFINANCESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL INTEGRATIONFINANCIAL LEGISLATIONSFINANCIAL PRODUCTSFINANCIAL REFORMFINANCIAL REGULATIONFINANCIAL REPORTINGFINANCIAL SECTORFINANCIAL SERVICEFINANCIAL SERVICE PROVIDERSFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STRENGTHFLOATING RATEFOREIGN BANKSFOREIGN FINANCIAL SERVICEFUND ASSETSGROSS DOMESTIC PRODUCTGUARANTEE SCHEMEGUARANTEE SCHEMESHARMONIZATIONHEDGE FUNDSHOME COUNTRIESHOME COUNTRYHOST COUNTRIESHOST COUNTRYHOUSEHOLDSHOUSINGHOUSING LOANHOUSING LOANSINCOMEINCOME GROWTHINCOME TAXINSOLVENCYINSOLVENCY LEGISLATIONINSOLVENCY PROCEDUREINSURANCEINTEREST RATEINTEREST RATE DIFFERENTIALINTEREST RATESINTERNATIONAL BANKINVESTMENT BANKSINVESTMENT FUNDINVESTOR CONFIDENCEJURISDICTIONSLABOR COSTSLABOR MARKETLAWSLEGAL FRAMEWORKSLEGISLATIONLEVEL PLAYING FIELDLIFE INSURANCELIQUID ASSETSLIQUIDITYLIQUIDITY SUPPORTLOANLOAN PORTFOLIOLOAN-TO-DEPOSIT RATIOLOW INTEREST RATESMACROECONOMIC STABILITYMANDATEMARKET CONDITIONSMARKET INFRASTRUCTUREMARKET PARTICIPANTSMARKET SHAREMARKET SHARESMATURITIESMINIMUM CAPITAL REQUIREMENTMONEY MARKETMONEY MARKET RATESMORAL SUASIONMORTGAGE INTERESTMORTGAGE LENDINGMORTGAGESOUTPUTOUTREACHPARENT COMPANIESPOLICY RESPONSEPRICE COMPETITIONPRODUCTIVE INVESTMENTSPROFESSIONAL NETWORKPROFITABILITYPRUDENTIAL REGULATIONPUBLIC FINANCESPUBLIC INVESTMENTRATING AGENCIESREAL ESTATEREAL ESTATE LOANSREAL SECTORRECAPITALIZATIONREGULATORY CONSTRAINTREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREGULATORY REQUIREMENTSREPAYMENTREPAYMENT CAPACITYRESERVERESERVE REQUIREMENTRESERVE REQUIREMENTSRESERVESRETAIL INTERESTRETURNRISK MANAGEMENTRISK WEIGHTRISK WEIGHTSSAFETY NETSAVINGSSHORT-TERM LIQUIDITYSINGLE MARKETSUBSIDIARIESSUBSIDIARYSUPERVISORY AGENCYSUPERVISORY AUTHORITIESSUPERVISORY AUTHORITYSUPERVISORY POLICIESSVERIGES RIKSBANKSWAPTAX RETURNSTRANSFER OF ASSETSUNEMPLOYMENTUNIONWORLD ECONOMYWorld Bank10.1596/1813-9450-5835