Kuntarahoitus Oyj - Company Announcement

Municipality Finance defined a nationally significant credit institution

Municipality Finance Plc
Stock Exchange Release
July 6, 2015 at 1:00 pm (CET +1)



Municipality Finance defined a nationally significant credit institution

As a result of the renewed bank regulation, the Act on Credit Institutions
require the Finnish Financial Supervisory Authority (FIN-FSA) to define credit
institutions significant for the financial system in Finland. According to the
decision published on July 6, 2015, FIN-FSA has listed Municipality Finance Plc
among these institutions. 

The credit institutions significant for the financial system are divided into
five different classes which determine the demand of capital add-on of 0 to 2
percent. Municipality Finance is categorized into the class 2 which means that
a capital add-on of 0.5 percent is required. Municipality Finance's ratio of
total own funds to risk-weighted assets was 33.53 percent at the end of 2014,
which easily fulfils the requirement. 



The Act on Credit Institutions sets some special requirements for the corporate
governance of the credit institutions significant for the financial system.
Municipality Finance's corporate governance policies already comply with these
requirements. 



The FIN-FSA assessment of the significant credit institutions is based on the
groundwork of the Act on Credit Institutions and the indicators published by
the European Banking Authority (EBA) in its guidelines. 


MUNICIPALITY FINANCE PLC

Esa Kallio
Executive Vice President, Deputy to the CEO
Tel. +358 50 3377 953

Measured by the group's balance sheet, MuniFin (Municipality Finance Plc) is
Finland's third largest credit institution. The company is owned by Finnish
municipalities, the public sector pension fund Keva and the Republic of
Finland. MuniFin is an integral part of the Finnish public economy. 

MuniFin's balance sheet totals EUR 30 billion. Funding for the company is
primarily obtained through the international capital markets. MuniFin's funding
is guaranteed by the Municipal Guarantee Board. 

MuniFin's mission is to ensure competitive funding for its customers in all
market conditions. The company's customers are Finnish municipalities,
municipal federations, municipally controlled companies and non-profit housing
cor­porations. A significant portion of lending is used for socially
responsible projects such as building hospitals, healthcare centers, schools,
day care centers and homes for the elderly. 

The Municipality Finance Group also includes the subsidiary company, Financial
Advisory Services Inspira Ltd. 

Read more: www.munifin.fi

Attachments:

Municipality Finance defined a nationally significant credit institution.pdf