The Bank's target is to ensure a sufficient level of liquidity to be able to continue disbursing new loans and fulfil all its payment obligations for at least one year ahead, without additional new funding.
At the end of December 2017, NIB’s total liquidity amounted to EUR 10,454 million, of which EUR 3,740 million (36% of the total) was in short-term money market instruments, and EUR 6,714 million (64% of the total) was invested in bonds with longer maturities.
|Counterparty risk class distribution|
During 2017, NIB's loan disbursements totalled EUR 3,147 million, and the Bank obtained EUR 5,943 million in new funding in 12 currencies. The EUR 3,740 million held in the short-term money market is used to manage the Bank's daily payment obligations. The instrument distribution is shown in the graph below.
|Cash instruments. Distribution by instrument|
*Reverse repos - repurchase agreements in which a bond is given as collateral for a cash deposit
The liquidity investments are limited by the counterparty and market risk framework that applies to Treasury operations.
Along with the counterparty and market risk framework, Treasury’s liquidity investments follow guidelines that will ensure the assets remain liquid even under stressed market conditions. At the end of 2017, 83% of the liquidity was invested in accordance with the Basel III liquidity rules of being high-quality liquid assets (HQLA), and 85% of the liquidity was eligible as repo collateral in one or several central banks. NIB does not have direct access to central bank repos, but can repo its bond securities via intermediating banks.
The Portfolio Management unit manages the bond security portfolios. The market value of these portfolios amounted to EUR 6,714 million at the end of 2017. The securities are held on both amortised cost and fair value bases, and include both floating-rate and fixed-coupon instruments. The instrument distribution of the portfolio can be seen in the graph below.
|Bond Group||Bond instruments. Distribution by instrument|
|Sovereign and sov. guaranteed agencies||21.3%|
|Non-sovereign public sector||19.3|
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
On 13 March, NIB offered a webcast to present the annual results. The record of the webcast is available online.
13 Mar 2018
On 23 January, NIB priced its first global USD benchmark in 2018. A new three-year bond met positive response with almost sixty investors participating.
24 Jan 2018