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BANK of Greenland’s Risk Report Highlights Need for Capital Base Assessment

In its latest risk report, the BANK of Greenland has emphasized the importance of assessing whether its capital base is sufficient to support upcoming activities.

Key Findings

• The bank’s risk-weighted exposures have increased by DKK 584,346 (approximately USD 87 million) in 2022 compared to 2021.
• Total risk-weighted exposures now stand at DKK 5,501,083, up from DKK 4,916,737 in 2021.

Risk Exposures

The report highlights the bank’s exposure to various risks:

• Credit Risk: The largest share of the total value of exposures, accounting for DKK 4,619,420.
• Market Risk: Exposure to fluctuations in market prices and interest rates.
• Operational Risk: Risk associated with the bank’s internal processes and systems.
• CVA (Credit Valuation Adjustment) Risk: Risk associated with changes in credit spreads.

Counterpart Risk

The report notes that the bank has a significant exposure to counterpart risk, which refers to the risk associated with trading activities. As of December 31, 2022, the bank’s total counterpart risk is DKK 13,892.

Interest Rate Risk

The report highlights the bank’s interest rate risk in positions outside its trading portfolio. The value of this risk is DKK 1,842 as of December 31, 2022.

Gearing Risk

The report also provides information on the bank’s gearing risk, which refers to the risk associated with high levels of leverage. As of December 31, 2022, the bank’s leverage ratio stands at 10.14%, which is above the regulatory minimum requirement.

Conclusion

In conclusion, the BANK of Greenland’s Risk Report highlights the importance of assessing its capital base and ensuring that it has sufficient resources to support its activities. The report provides valuable insights into the bank’s risk profile and will help stakeholders make informed decisions about their investments in the bank.