Structure of OP Financial Group and OP Mortgage Bank, and administrative bodies

OP Financial Group's structure and group structure

OP MB is a subsidiary wholly owned by OP Cooperative acting as OP Financial Group’s central cooperative, and a member credit institution. OP MB acts as a mortgage bank issuing bonds with mortgage collateral and bonds with public sector collateral. OP MB is part of OP Cooperative Consolidated.

Established in 1902, OP Financial Group is a financial services group based on a cooperative foundation. OP Financial Group is made up of 147 OP cooperative banks (31 December 2019) and their central cooperative (OP Cooperative) as well as a number of subsidiaries and affiliates.

Member cooperative banks and OP Cooperative Consolidated credit institutions form the amalgamation of deposit banks. Its central cooperative is OP Cooperative.

OP Cooperative Consolidated comprises OP Cooperative, which acts as the parent entity, and entities majority-owned by the parent institution or any of its subsidiaries and entities wholly owned by the parent entity or its subsidiaries.

The central cooperative is obliged to support its member credit institutions and is liable for their debts. The member credit institutions are obliged to participate in any necessary support measures aimed at preventing another member credit institution from going into liquidation. In addition, they are jointly and severally liable for debts of a member credit institution failing to meet its obligations.

Read more about OP Financial Group’s structure in section 2 of OP Financial Group’s Corporate Governance Statement 2019.

OP MB's governance structure

OP Cooperative, the only shareholder of OP MB, exercises decision-making powers at a General Meeting. The General Meeting elects the Board of Directors and auditors, for example. Instead of the General Meeting, the shareholder may make a written shareholder decision. The Board of Directors is in charge of the OP MB’s strategic management. Responsibility for operational management rests with the Managing Director appointed by the Board of Directors.

On 31 December 2019, OP MB had six employees. OP MB purchases all the most important support services from OP Cooperative and its Group companies, reducing its need for its own personnel.