Funding and Green Projects Evaluation
MuniFin
Copyright MuniFin
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Operations rely on low risk appetite
MuniFin's risk pillars
Profitability & Capital
€ Liquidity & Funding risks
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€
Credit risks
Market risks
Operational risks
Objectives and related measures
A sufficient level of earnings, profitability and capital
An adequate liquidity buffer and a sustainable funding position and profile
Well diversified short- and long-term funding sources
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Well-balanced, low risk liquidity portfolio with a high ratio of HQLA
Sufficient liquidity to cover continued undisturbed operations without new long-term funding for at
least 12 months. Liquidity metrics, LCR and NSFR, to be kept well above regulatory requirements
• Secondary source of funding: Monetary policy counterparty of the Bank of Finland
Sound credit risk profile appropriate for MuniFin's business model
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All customer financing is direct municipal risk, or the financing guaranteed by a municipality or
central government (deficiency guarantee)
All customer financing carries a 0% risk weighting in capital adequacy calculations
Liquidity portfolio rating target AA (single issuer minimum rating requirement A-)
Derivative counterparty minimum rating requirement A- (with minor exceptions)
0/0 threshold two-way CSAs with daily collateral management
Sound market risk profile appropriate for MuniFin's business model
Funding and liquidity portfolio investments are as a norm back-to-back hedged to floating rate
EUR
Customer financing is all in EUR and as a norm hedged to floating rate
Effective operational control and compliance to support functional and responsible
operations
Objective is to minimize operational risks related to business and operations by carefully
identifying and analyzing the impact and probability of the risksView entire presentation