Finnfund provides finance for banks and financial institutions. The banks we finance usually have a focus on small and medium-sized enterprises, minor infrastructure projects, family companies or households.
Finance granted to financial institutions often helps them meet capital adequacy requirements and improves their ability to grant loans.
At the end of 2016 our investments in banks and financial institutions accounted for 12.5 percent of the investment portfolio.
During the year two new decisions, totalling EUR 23.7 million, were made regarding finance for banks and financial institutions.
Finance for banks and financial institutions often has a significant multiplier effect on the economies of developing countries. The loans granted and the conditions attached also promote operational transparency, improve the management of environmental and social risks, among other things.
In many countries, especially in Africa, local banks are often too small to be profitable. Risk-tolerant finance obtained from development finance institutions such as Finnfund supports their growth in local and regional markets.