Note 17 - Market risk related to currency exposure
Foreign exchange risk arises where there are differences between the Group's assets and liabilities in the particular currency. Currency trading must at all times be conducted within adopted limits and authorisations. The Group's limits define quantitative measures for maximum net foreign currency exposure, measured in Norwegian kroner.
The Group has drawn up limits for net exposure in each individual currency, as well as limits for aggregate net foreign currency exposure (expressed as the higher of the sum of long and short positions). Overnight exchange rate risk for spot trading in foreign currency must not, on a net basis, exceed NOK 85 million per individual currency or NOK 100 million on an aggregate basis.
Foreign exchange risk was low throughout the year and within the maximum limit of NOK 12 million as of 31 December 2015. For further details see note 6 on risk factors.
| Parent Bank | Net foreign exchange exposure NOK | Group | ||
| 2014 | 2015 | (NOK million) | 2015 | 2014 |
| 1 | -4 | EUR | -4 | 1 |
| -5 | -7 | USD | -7 | -5 |
| -16 | 1 | SEK | 1 | -16 |
| -16 | 1 | Other | 1 | -16 |
| -36 | -9 | Total | -9 | -36 |
| 100 | 100 | Overall currency limit | 100 | 100 |
| 85 | 85 | Total per currency | 85 | 85 |
| 1.1 | -0.3 | Result effect of 3% change, after tax | -0.3 | 1.1 |
Financial results
- Report of the Board of Directors
- Income statement
- Statement of Financial Position
- Statement of Changes in Equity
- Cash flow statement
- Notes
- Financial summary (Group)
- Equity capital certificates
- Statement in compliance with the securities trading act, section 5-5
- Auditor's report
- Control committee's report
Annual report and notes
