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Municipality Finance’s capital adequacy remains well above the ECB minimum requirements

Municipality Finance Plc
Stock exchange release
1 December 2023 at 11:00 am (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 requirement was kept unchanged at 2 percent. The updated capital buffer requirement is effective on 1 January 2024. When taking into account the P2R, the total SREP capital requirement (TSCR) ratio is currently 10 percent.

MuniFin’s capital adequacy ratio exceeds the requirement by multiple times. At the end of June 2023, both the Group’s total capital ratio and CET1 capital ratio were 101.3 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.


Further information:

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

MuniFin (Municipality Finance Plc) is one of Finland’s largest credit institutions. The owners of the company include Finnish municipalities, the public sector pension fund Keva and the Republic of Finland. MuniFin Group also includes the subsidiary company, Financial Advisory Services Inspira Ltd. The Group’s balance sheet totals approximately EUR 48 billion.

MuniFin builds a better and more sustainable future with its customers. Our customers include municipalities, joint municipal authorities, wellbeing services counties, joint county authorities, corporate entities under the control of the above-mentioned organisations, and affordable social housing. 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. The company 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.

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