Municipality Finance Plc
Stock Exchange Release
3 February 2022 at 3:00 pm (EET)
Municipality Finance’s capital adequacy remains well above the ECB minimum requirements
The European Central Bank has updated the capital buffer requirement (P2R) imposed on Municipality Finance Plc (MuniFin) as part of the yearly Supervisory Review and Evaluation Process (SREP). The updated P2R is 2 percent, which is 0.25 percentage points lower than previously. The updated P2R will enter into force on 1 March 2022. When taking into account the P2R, the total SREP capital requirement (TSCR) ratio is currently 10 percent. The minimum level of total capital ratio including P2R and other capital buffer requirements is 13.15 percent as of 1 March 2022.
MuniFin’s capital adequacy ratio exceeds the requirement by multiple times. At the end of June 2021, the Group’s total capital ratio was 114.7 percent.
MuniFin is supervised by the European Central Bank and the continuous SREP is part of the banking supervision activities. The banking supervision aims to ensure that credit institutions have appropriate risk management methods in place, as well as sufficient capital and liquidity.
MuniFin will publish the financial statements for 2021 on 4 February 2022.
MUNICIPALITY FINANCE PLC
Harri Luhtala
Executive Vice President, CFO
Tel. +358 50 592 9454
MuniFin (Municipality Finance Plc) is one of Finland’s largest credit institutions: the Group’s balance sheet totals close to EUR 46 billion. The company is owned by Finnish municipalities, the public sector pension fund Keva and the Republic of Finland.
MuniFin builds a better and more sustainable future 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 an active Finnish bond issuer in international capital markets and the first Finnish green and social 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
