Greenland’s Bank Reveals Exposures in Shares and Interest Rate Risk
December 31, 2022: The Bank of Greenland Releases Its Risk Report for 2022
The Bank of Greenland has published its Risk Report for 2022, providing insight into the bank’s exposures in shares and interest rate risk outside its trading portfolio.
Share Exposures
According to the report, the bank acquired shares in sector companies in collaboration with other credit institutions to support its business operations. These shares are valued at TDKK 117,783 and will not be sold as they are considered essential for the bank’s operations. The value of these shares is adjusted quarterly, semi-annually or annually based on new information from the sector companies.
- Valued at TDKK 117,783
- Essential for business operations
- Value adjusted quarterly, semi-annually or annually
The bank also owns unlisted shares in a Greenlandic enterprise with which it has collaborated, valued at TDKK 1,470. These shares will not be sold and are measured at net book value less any impairment losses.
Interest Rate Risk Exposure
In addition to its share exposures, the bank’s interest rate risk outside its trading portfolio amounts to TDKK 1,842, consisting of:
- Fixed-rate assets such as loans, advances, and accounts receivable from credit institutions
- Deposits and debt to credit institutions
This risk is calculated daily.
Leverage Ratio
The bank’s leverage ratio, which measures its capital adequacy against its total exposures, stood at 12.3% at the end of 2022, exceeding its target of 10%. The bank’s leverage ratio exposure amounted to TDKK 9,883,691.
Commitment to Transparency and Risk Governance
The Bank of Greenland’s Risk Report 2022 provides a comprehensive overview of the bank’s risk profile and management practices, demonstrating its commitment to transparency and risk governance.