Sandnes Sparebank applies to State Finance Fund / News / The Foreigner

Sandnes Sparebank applies to State Finance Fund. 350 million kroner required to maintain normal lending. Sandnes Sparebank says it wishes to maintain its more or less stable market position in Rogaland. Provided it fulfills the conditions of the State Finance Fund, the stocks and bonds will give it sufficient financial coverage to increase its core capital base to 10%. The reason for their application is to strengthen their solvency and to avoid a slowdown in future growth, they write in a press release.

sandnes, sparebank, state, finance, fund, guarantee, lending, security, capital, norwegian



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Sandnes Sparebank applies to State Finance Fund

Published on Wednesday, 30th September, 2009 at 08:18 under the news category, by Michael Sandelson   .

350 million kroner required to maintain normal lending.

Sandnes Sparebank
Sandnes Sparebank
Photo: J. Ådanes/Wikimedia Commons


Sandnes Sparebank says it wishes to maintain its more or less stable market position in Rogaland. Provided it fulfills the conditions of the State Finance Fund, the stocks and bonds will give it sufficient financial coverage to increase its core capital base to 10%.

The reason for their application is to strengthen their solvency and to avoid a slowdown in future growth, they write in a press release.

“All the major Norwegian banks are looking to increase their own capital, and the market expects them to have a higher amount of equity,” Vidar Torsøe, assistant administrative director in Sandnes Sparebank tells The Foreigner.

The so-called bridge financing is a loan with favourable conditions.

“It’s fully flexible, and can be repaid at any time if replaced with capital of the same quantity.”

But neither future nor existing customers need fear for their assets, according to Torsøe. The bank is part of the Norwegian Banks’ Guarantee Fund; a deposit insurance scheme to guarantee savers up to 2 million kroner should the bank fail, and the cash injection loan has nothing to do with this.



Published on Wednesday, 30th September, 2009 at 08:18 under the news category, by Michael Sandelson   .

This post has the following tags: sandnes, sparebank, state, finance, fund, guarantee, lending, security, capital, norwegian.





  
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