Aktia Real Estate Mortgage Bank
Aktia Real Estate Mortgage Bank plc is a Finnish credit institution subject to the Act on Mortgage Credit Bank. A mortgage bank grants real estate loans, i.e. loans secured by real estate or shares in housing corporations, and loans to public sector entities.
Aktia Real Estate Mortgage Bank is a credit institution specialised in mortgage loans. The bank grants loans to private individuals and housing corporations. Only real estate or shares in housing corporations located in Finland can serve as collateral for the loans. Aktia Real Estate Mortgage Bank does not take deposits, but the operation is financed by equity, short-term loans and issuing covered bonds on domestic and foreign capital markets.
Aktia Real Estate Mortgage Bank plc is under Finnish ownership:
| Aktia Bank plc | 49.9% of equity | 70% of voting rights |
| 30 Savings banks | 37.9% of equity | 20% of voting rights |
| 34 POP banks | 12.2% of equity | 10% of voting rights |
Business concept and loan products
The mortgages are distributed through respective branch network by the co-operating banks. Customers are provided flexible and safe service at their own branch office – and offered a competitive and broad product range as a result of Aktia Real Estate Mortgage Bank's cost-effective business model and excellent credit rating.
Risk management
Aktia Real Estate Mortgage Bank strives to protect itself against all risks. Credit risks are managed by careful risk allocation and effective collateral management. Interest rate risks are covered by the use of derivatives. A currency risk does not exist. Asset and liability management services, including frequent reports on portfolio development and risks, are produced by the Group Treasury of Aktia Bank plc.
Funding and collateral
Aktia Real Estate Mortgage Bank funds its activities mainly by issuing covered bonds under its annually updated EMTCN-programme.
The collateral for the covered bonds consists of loans granted by Aktia Real Estate Mortgage Bank. The loans that serve as collateral for the covered bonds are entered into a separate loan register supervised by the Finnish Financial Supervisory Authority.
Aktia Real Estate Mortgage Bank's short-term funding comes from a credit facility granted by Aktia Bank.