Financial asset management
The objective of the Bank of Finland’s financial asset management is to meet the liquidity, security and return requirements placed on the central bank while taking into account the risks and social responsibility aspects inherent in investment activities.
In managing its financial assets, the Bank of Finland secures the value of the assets and its ability to support the liquidity of the banking system, whenever necessary. The limits set for investment risk ensure prudent management of the Bank’s financial assets. The Bank of Finland’s capital adequacy is sufficient to cover the risks arising from the performance of its tasks.
The Bank of Finland's financial assets comprise diverse investments
In 2019, the Bank of Finland’s financial assets amounted to around EUR 11 billion. They comprised direct foreign currency-denominated and euro-denominated fixed-income investments, investments in equity and real estate, gold holdings and items denominated in IMF Special Drawing Rights (SDRs).
The Bank of Finland’s fixed-income portfolios are managed in accordance with the investment policy decided by the Bank of Finland Board each year.
In addition to its fixed income investments, the Bank of Finland manages a long-term investment portfolio which has lower liquidity requirements and a higher expected return than its other portfolios.
The Bank of Finland's financial assets yielded an overall return of 9.3%, or EUR 971 million in 2019.