Municipality Finance Plc
Stock Exchange Release
19 November 2020 at 12:00 noon
Municipality Finance’s capital adequacy remains well above the ECB minimum requirements
Due to the ongoing pandemic, the European Central Bank (ECB) will not give the yearly Supervisory Review and Evaluation Process Decision (SREP Decision) this year. Instead, the ECB has given MuniFin an Operational Letter, in which the capital buffer requirement (P2R) imposed on MuniFin last year is confirmed to continue in force unchanged at 2.25 percent. When taking into account of this capital buffer requirement, the total SREP capital requirement (TSCR) ratio is currently 10.25 percent. The minimum level of total capital ratio including P2R and other capital buffer requirements is 13.38%.
MuniFin’s capital adequacy ratio exceeds the requirement by multiple times. At the end of June 2020 the Group’s total capital ratio was 113.8 percent.
MuniFin is supervised by the ECB and the continuous SREP process is part of the banking supervision activities carried by the ECB. The banking supervision aims to ensure that credit institutions have appropriate risk management methods in place, as well as sufficient capital and liquidity.
MUNICIPALITY FINANCE PLC
Executive Vice President, CFO
Tel. +358 50 592 9454
MuniFin (Municipality Finance Plc) is one of Finland’s largest credit institutions: the company’s balance sheet totals approximately EUR 41 billion. The company is owned by Finnish municipalities, the public sector pension fund Keva and the Republic of Finland.
MuniFin’s mission is to build a better future in line with the principles of responsibility and in cooperation with its customers. MuniFin’s customers are Finnish municipalities, municipal federations, municipally controlled entities and non-profit housing organisations. Lending is used for environmentally and socially responsible investment targets such as public transportation, sustainable buildings, hospitals and healthcare centres, schools and day care centres, and homes for people with special needs.
MuniFin’s customers are domestic but the company operates in a completely global business environment. It is the most active Finnish bond issuer in international capital markets and the first Finnish green bond issuer. The funding is exclusively guaranteed by the Municipal Guarantee Board.
The Municipality Finance Group also includes the subsidiary company, Financial Advisory Services Inspira Ltd.
Read more: www.munifin.fi