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Bank of Greenland’s Risk Report 2023 Highlights Capital Base Sufficiency

The Bank of Greenland has released its Risk Report for 2023, revealing a total risk-weighted exposure of DKK 5,573,039. The report highlights the bank’s capital base sufficiency to support upcoming activities.

Key Findings

• Total risk-weighed exposure: DKK 5,573,039
  • Credit risk exposure: DKK 4,607,677 (up from DKK 4,619,420 in 2022)
  • Market risk exposure: DKK 233,494
  • Operational risk exposure: DKK 721,601
• Leverage ratio: 10.615% (meets regulatory requirements)

Capital Base Sufficiency

The report notes that the bank’s capital base is sufficient to support its activities, citing a leverage ratio of 10.615%, which meets the regulatory requirements.

Market Risks

In terms of market risks, the bank employs the market value method to calculate counterpart risk in derivatives trading. The bank’s total counterpart risk exposure was DKK 10,267 at the end of 2023.

Shareholdings and Unlisted Shares

The report also highlights the bank’s shareholdings in sector companies, with a total position amounting to DKK 133,217. These shares are held outside the bank’s trading portfolio and are adjusted quarterly, semi-annually, or annually depending on new information from individual sector companies.

In addition, the bank owns unlisted shares in an enterprise in Greenland, valued at net book value less any impairment losses. The total position amounting to DKK 1,428 is also held outside the trading portfolio.

Conclusion

The report concludes that the bank’s capital base is sufficient to support its activities, with a leverage ratio of 10.615%. The bank will continue to monitor and manage its risk exposure to ensure its capital base remains robust.

Full Report Available

The Bank of Greenland’s Risk Report 2023 is available for download on the bank’s website.