Estonia, Financial Services

Net financial assets of resident individuals at the end of last year amounted to 1.8 bln euros. The average size of the financial assets of Estonian resident individuals was 7,709 euros whilst the volume of outstanding loans was 6,339 euros. The average net financial assets of an individual amounted to 1,370 euros,  the Estonian Financial Supervision Authority reported.

Commenting on the overall situation of the financial market, Kilvar Kessler, chairman of the management board of the Financial Supervision Authority, said that the number of different investment offers has surged. "People are offered more and more new and exciting investment opportunities, but for many people understanding the risks related to those investments might be difficult. Crowdfunding platforms and savings and loan associations have gained popularity, which usually are not monitored by the Financial Supervision Authority or in which deposits are not ensured by the public Guarantee Fund. We believe that market participants, consumers, regulators and the Financial Supervision Authority need to discuss if these new investment opportunities need additional regulation and public monitoring," Kessler said.

"Unfortunately we can also observe a growth trend in fraudulent 'investment offers'. When possible, the Financial Supervision Authority will alert the public of their suspicion and will within their jurisdiction file for the launching of criminal proceedings, in addition we support colleagues in investigative institutions with the know-how necessary for the capture and prosecution of frauds," Kessler said.

The balance of deposits at banks in 2016 increased by 5% or 798 mln euros to 16.3 bln euros. As a result of low interest rates the share of demand and overnight deposits in total deposits grew by 7% or 855 mln euros on year.

The balance of the loan portfolio of banks increased by 6% or 1 bln euros. At the end of the year, banks had issued loans in the amount of 17.8 bln euros. In addition, creditors having an aggregate loan portfolio of 0.7 bln euros moved under the surveillance of the Financial Supervision Authority in 2016.

In the field of investment, the growth in volumes has accelerated mainly due to pension funds, which boosted their aggregate assets by 18% in 2016. Real estate funds saw their assets increase by 61%. Assets of all savings and investment related financial services saw their assets increase 5% to 10.2 bln euros in 2016.

The volume of life insurance payments in 2016 increased by 3% and totaled 86 mln euros. Insurance payments in non-life insurance increased 8% to 302 mln euros.