HIGHLIGHTS 2015

  • NIB raised EUR 4.3 billion in new funding
  • NIB issued two Environmental Bonds, in EUR and SEK, totalling EUR 607 million during the year

PROSPECTS 2016

  • NIB will continue to issue NIB Environmental bonds (NEB)
  • NEB issuances are expected to grow as a share of NIB’s total issuance

Liquidity

NIB has a survival horizon measuring the period during which NIB is able to fulfil all its payment obligations stemming from ongoing business operations under a severe stress scenario. The target survival horizon is twelve months and shall always exceed a nine months. At the end of 2015, NIB’s survival horizon is calculated at 431 days, equivalent to more than 14 months.

In order to limit the liquidity risk, NIB maintains a liquidity buffer, mainly invested in EUR, USD and the Nordic currencies. At the end of 2015, the liquidity buffer amounted to EUR 9,077 million, of which 29%, or EUR 2,653 million, are held as cash in short-term money market instruments and 71%, or EUR 6,424 million, are held in securities with longer maturities.

The liquidity buffer must fulfil the quality requirements stipulated in NIB’s Liquidity Policy, thereby ensuring that the buffer maintains both its market value and sufficient liquidity under severe market conditions, and that the asset quality is high. At year-end, 80% of the liquidity buffer was warehoused in high-quality liquid assets (HQLA), 89% were eligible as repo collateral in one or several central banks, and 85% of the assets belonged to the top four internal rating categories. Furthermore, the Bank easily fulfilled the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) requirements as specified in the Capital Requirements Regulation of the European Union.

Counterparty risk class in 2015

NIB_2015graphs_pie_Counterparty risk class in 2015