BANK OF FINLAND
Press release number 11
24 Mar 2006

Bank of Finland to transfer EUR 134 million to the State

The Parliamentary Supervisory Council has confirmed the Bank of Finland's financial statements for 2005. Upon the proposal of the Bank of Finland Board, the Parliamentary Supervisory Council decided that EUR 134 million of the profit of EUR 200 million be made available for the needs of the State and that the remaining EUR 66 million be transferred to the Bank's reserve fund.

In deciding on the profit distribution, the Bank of Finland Board assessed that the Bank's capital adequacy, having weakened markedly at the beginning of the 1990s in particular, has gradually improved and reached a level sufficient to cover the risks relating to the undertaking of the Bank's tasks.

According to section 21 of the Act on the Bank of Finland, half of the Bank's profit shall be transferred to the reserve fund and the remaining profit shall be made available for use in accordance with the needs of the State. However, the Act provides that the Parliamentary Supervisory Council may decide on the use of the profit for other purposes if this is justifiable because of the Bank's financial condition or the size of the reserve fund. In light of the Bank's current financial situation, a larger share of the profit from the financial year 2005 than before can be made available for the State. The same also applies in the future if the risks relating to the undertaking of the Bank's tasks do not change fundamentally. Over the past few years, the Bank of Finland has transferred at maximum half of the profit to the State.

The Bank of Finland's financial statements, as part of its complete Annual Report, will be posted today in Finnish and Swedish on the Bank's website at www.suomenpankki.fi. The English language version will be released later.

For further information, please contact Pentti Hakkarainen, Member of the Board of the Bank of Finland, tel. +058 10 831 2002, or Esa Ojanen, Head of Administration, tel. +358 10 831 2435.