HELSINKI - Municipality Finance Plc (MuniFin), one of Finland's major credit institutions, has announced that its capital adequacy ratios are substantially higher than the European Central Bank's (ECB) minimum requirements. According to a recent update from the ECB, MuniFin's capital buffer requirement, part of the annual Supervisory Review and Evaluation Process (SREP), will remain at 2 percent, effective January 1, 2025.
The total SREP capital requirement (TSCR) ratio stands at 10 percent, and MuniFin's capital adequacy ratio significantly surpasses this figure. As of the end of June 2024, the Group's total capital ratio and CET1 capital ratio were both reported at 102.4 percent, indicating a robust financial position.
MuniFin is under the supervision of the ECB, which conducts regular reviews to ensure that credit institutions like MuniFin have adequate risk management strategies, capital, and liquidity to maintain financial stability.
The company, owned by Finnish municipalities, the public sector pension fund Keva, and the Republic of Finland, has a balance sheet exceeding EUR 50 billion. MuniFin is known for facilitating investments in socially and environmentally responsible projects, including public transportation, sustainable building, healthcare facilities, educational institutions, and housing for those with special needs.
Operating on a global scale, MuniFin is a prominent Finnish bond issuer in the international capital markets and is recognized as the first Finnish issuer of green and social bonds. The company's funding is fully backed by the Municipal Guarantee Board, ensuring a high level of security for investors.
This announcement is based on a press release statement and provides a factual overview of MuniFin's current capital adequacy status and its compliance with ECB regulatory requirements.
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