EU’s Single Resolution Board has imposed a minimum requirement for own funds and eligible liabilities on Municipality Finance

Source: OMX
EU’s Single Resolution Board has imposed a minimum requirement for own funds and eligible liabilities on Municipality Finance

Municipality Finance Plc
Stock exchange release
6 April 2021 at 5:00 pm (EET)

EU’s Single Resolution Board has imposed a minimum requirement for own funds and eligible liabilities on Municipality Finance

Acting as Municipality Finance Plc’s (MuniFin) crisis resolution authority, the EU’s Single Resolution Board (SRB) has imposed a minimum requirement for own funds and eligible liabilities on MuniFin (MREL requirement). The size of the MREL requirement is 10.25% of the total risk exposure amount and 3.00% of the leverage ratio exposure. The MREL requirement is based on simplified resolution strategy applying to MuniFin in accordance with SRB’s decision.
The MREL requirement will take effect on 1 January 2024. MuniFin must fully comply with the final MREL target levels from 1 January 2022 onwards.
MuniFin’s own funds and eligible liabilities exceed the minimum requirements by a wide margin.

MUNICIPALITY FINANCE PLC

Further information:

Harri Luhtala
Executive Vice President, Finance, CFO
tel. +358 50 592 9454

MuniFin (Municipality Finance Plc) is one of Finland’s largest credit institutions: the company’s balance sheet totals EUR 44 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, joint municipal authorities, 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 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