NIB Nordic Investment Bank

Market risk

Market risk

Market risk is i.a. the risk that losses incur as a result of fluctuations in exchange rates and interest rates. NIB's exposure to exchange rate risk occurs when translating assets and liabilities denominated in foreign currencies into the functional currency, the euro. The Bank funds its operations by borrowing in the international capital markets and provides loans often in currencies other than those borrowed, which unhedged would create currency mismatches in assets and liabilities. Furthermore, the funds borrowed often have other interest rate structures than those applied in the loans provided to the Bank's customers.

Exposure to exchange rate risk and interest rate risk created in the normal course of business is minimised by the use of derivative instruments. The residual risk must be within strictly defined limits. Market risks are measured, managed and reported in accordance with a set of limits and procedures that are reviewed on a regular basis.

Risk Management Policies (403 KB)
  • AR2017


NIB finances new motorway connection in western Norway

A loan to Bergen–Os Bompengeselskap AS will finance the construction of a new section of the E39 motorway in Hordaland County.

15 Mar 2018

NIB finances construction of a new dairy in Bergen, Norway

NIB has provided a loan agreement of NOK 400 million to the Norwegian dairy company Tine.

14 Mar 2018

NIB in 2017: Stable profit on expanding loan stock

In 2017, NIB continued to expand its lending operations. Loans aimed at improving productivity supported investments in R&D, infrastructure and energy. On the environmental side, the focus was on wastewater treatment.

13 Mar 2018