Responsible lending

As our single biggest type of lending, home mortgage loans provide a good opportunity to exercise influence. We shall promote a shift towards green housing loans and actively seek ways to encourage our customers to choose environmentally friendly, sustainable alternatives in their real estate investments.

We make lending decisions following an objective assessment of the customer's ability to repay the loan. The loan shall correspond to the customer's needs and be suitable for the customer. This includes ensuring that the customer understands the features of the product.

We support the local economy and sustainable development by providing funding for sound projects that can be successfully implemented. This means that we base our lending on a good knowledge of customers and their businesses, enabling the Bank to evaluate projects from a sustainability perspective regarding repayment capacity, as well as to identify risks related to climate change, altered consumer behaviour or new regulatory requirements. In its dialogue with customers, the Bank encourages a sustainable strategy.

The repayment capacity of each customer is monitored on an ongoing basis. Combined with our personal relationships with our customers, in cases where the customer experiences financial difficulties this enables measures to be put in place early to minimise financial losses for both the customer and the Bank of Åland.

We make lending decisions in accordance with our governing documents, sound risk management principles and legislation, thereby supporting customers’ financing requirements and business in a way that ensures their needs and secures the Bank's future.

We continuously train our staff in the field of responsible lending.