Bank of Åland Performance Overview
Funding Strategy
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Covered Bond programme was created in early 2012 in order to diversify funding sources and to form a reliable
and cost efficient funding channel
EUR- and SEK-denominated Covered Bonds total amount outstanding* EUR 897 M as of June 30, 2021
• A balanced funding mix is maintained with diversity of funding sources
•
Themes 2021
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Share of customer deposits will stay high on around 60 % of funding
•
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•
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During the Covid-19 it has been a reasonable strategy to issue retained covered bonds and use those as
collateral for funding from the central banks
Demand conditions and the market situation favour issuance in Covered Bonds
The balanced funding mix is maintained
⚫ The Bank of Åland will receive an MREL requirement from the beginning of 2022. The requirement will consist
of a minimum of 9 % total capital requirement and a minimum of 3% leverage ratio. The MREL requirements
have no material effect on the funding of the bank
* Ex retained covered bonds
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