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|Covered Bond programme|
De Volksbank aims for a diversified use of funding sources. This implies the use of different funding instruments regarding maturities, markets, regions and investor types.
As a retail bank de Volksbank primarily uses savings for its funding. Via the retail channel, we can raise term deposits, instant-access savings or retail and corporate current account deposits under the various brands. Further, de Volksbank obtains funding from the financial markets, in part depending on current market conditions.
To cover its funding need with maturities in excess of one year, de Volksbank uses senior unsecured funding (MTN), (mortgage) securitisations (RMBS) and a statutory covered bond programme. The latter programme permits not only the issue of public covered bonds but also the issue of private loans. In addition, we obtain funding using our liquid assets as collateral, for example in repo transactions.
In its funding strategy and planning, de Volksbank takes into account the introduction of the bail-in principle on 1 January 2016. We strive for a diversified capital structure with, as a minimum, sufficient subordinated and senior unsecured funding to ensure that retail and SME savings customers with balances in excess of € 100 thousand are not included in a bail-in. The exact details of MREL and TLAC regulations, market conditions and the current funding requirement may affect specific details of the funding strategy.
In this section information on the various funding programmes available to de Volksbank is presented. The graph below shows an overview of the funding mix at the end of December 2018.