Liquidity and portfolio management

Liquidity is targeted at between 25 - 40 % of projected net cash flow requirement for the next 12 months. This target takes into account the level of undisbursed loans and the nature of the asset base.

As the EIB is a non-profit maximising institution, profits are normally transferred to reserves. The Bank is obliged to maintain a statutory reserve of 10 % of subscribed capital.

Asset/liability management policies and controls are in place to manage and monitor market risks.