The Central Bank of Estonia published its review of 2024 activities to the Riigikogu, combining an economic and financial-sector stocktake with priorities for monetary policy transmission, financial stability and crisis readiness. It assessed existing financial-stability measures as appropriate but, citing faster-than-trend credit growth and higher risk, judged it reasonable to keep the countercyclical capital buffer at 1.5% and to further raise resilience expectations for critical payment services. The review highlighted euro area disinflation and the European Central Bank’s shift to gradual rate cuts, alongside ongoing balance sheet normalisation, including the end of reinvestments and a balance sheet reduction of almost EUR 0.5 trillion. For Estonia, it flagged lending growth of almost 10% versus below 3% in the euro area average, and noted that geopolitical tensions could raise problem loans and complicate market funding. On operational resilience, it reported updated payment-system resilience requirements for banks providing vital services, named as Swedbank, SEB, Luminor, LHV and Coop Pank, and work with banks on backup options including offline card payments for essential merchants. The bank also reported a 2024 profit of EUR 74 million, with a transfer of EUR 18.5 million to the state budget. Work will continue with commercial banks on backup solutions and at European level on resilience options, including in the context of the digital euro, which it described as being in a preparatory phase with the legal basis under discussion in the European Parliament and the Council. The Central Bank of Estonia also pointed to an international digital euro conference planned for the end of September with the Latvian and Lithuanian central banks.

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