GrønlandsBANKEN A/S : The BANK of Greenland as a systemically important financial institution (SIFI) 2023
June 22, 2023 at 08:48 am EDT
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The following notification from the Danish FSA dated 21 June 2023 has been translated from Danish to English by the BANK of Greenland. In the event of any discrepancies, the Danish text will apply.
Danish Financial Supervisory Authority
21 June 2023
The BANK of Greenland as a systemically important financial institution (SIFI)
The Danish FSA has designated the BANK of Greenland as a systemically important financial institution (SIFI) in Greenland. This is because the BANK of Greenland for two consecutive years lies above the threshold values for two of the indicators for designation as an SIFI in Greenland.
A systemically important financial institution (SIFI) must lie below the threshold values for the following indicators for three consecutive years, in order to cease to be an SIFI, cf. Section 308(4) of the instrument concerning the entry into force in Greenland of the Danish Financial Business Act (hereafter referred to as the "Financial Business Act").
Indicators
2022
2021
Limits
The institution's balance sheet as a
percentage of GDP
39.5
35.9
> 65
The institution's lending in Greenland as a
percentage of Greenlandic banking and
mortgage credit institutions' total lending
in Greenland
77.8
78.9
> 50
The institution's deposits in Greenland as a
percentage of the Greenlandic banking institutions'
total deposits in Greenland
92.1
84.1
> 50
The Danish FSA has compiled the BANK of Greenland's systemic importance (systemicity) at 8.5, cf. Section 308(6) of the Danish Financial Business Act. The systemicity is calculated as an average of the following factors, cf. Section 308(6) of the Danish Financial Business Act, which are then divided by 10. Two of the factors are identical to the above indicators.
Factors and systemicity
2022
Balance sheet of the institution as a percentage of the total balance
sheet of Greenlandic banking institutions, mortgage credit institutions
and investment services companies.
84.3
The institution's lending in Greenland as a percentage of Greenlandic
banking institutions and mortgage credit institutions' total lending in Greenland.
77.8
The institution's deposits in Greenland as a percentage of the Greenlandic
banking institutions' total deposits in Greenland.
92.1
Systemicity
8.5
Based on the calculation of systemicity, the institution is placed in categories of systemicity, cf. Section 308(7) of the Danish Financial Business Act. The BANK of Greenland is placed in category 2, cf. the table below.
Systemicity categories
Systemicity
Category 1
≤ 5
Category 2
[5-15[
Category 3
[15-25[
Category 4
[25-35[
Category 5
≥ 35
The BANK of Greenland must fulfil a capital requirement by way of a SIFI buffer requirement of 1.5% that reflects the systemic importance (systemicity) of the institution, cf. Section 308(7) and Section 125h of the Danish Financial Business Act. The SIFI buffer requirement must be fulfilled on the basis of Common Equity Tier 1 (CET 1) capital.
The Danish Minister for Industry, Business and Financial Affairs determines the SIFI buffer requirements within the systemic buffer framework, cf. Section 125h, cf. Section 125a(6) of the Danish Financial Business Act.
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Disclaimer
Bank of Greenland A/S published this content on 22 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 June 2023 12:47:06 UTC.
Groenlandsbanken A/S is a Denmark-based bank engaged in consultancy and financial services in Greenland. The Bankâs products and services are provided to private customers and commercial enterprises. It offers home banking, mortgage loans, savings accounts, pension funds, insurance, payment transfers, and investment advisory services among others. Furthermore, the Bank also operates an electronic banking platform, named Netbank, which enables the access to a range of facilities, such as payments, transfers and invoices. The Bank collaborates with companies involved in the financial sector, including the Bankers' Information Technology (IT) Centre (BEC), Nykredit, DLR Kredit, Letpension, MasterCard, Visa, Narsaq OMX Nordic, Nordea Invest and Carnegie Worldwide. It controls a number of branches, which are located in Nuuk, Qaqortoq, Maniitsoq, Sisimiut, Aasiaat, Ilulissat, Appaaraq and Tasiilaq.
GRØNLANDSBANKEN A/S 