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 108 member cooperative banks (as at 31 December 2022) and their central cooperative (OP Cooperative) as well as a number of subsidiaries and affiliates. 

The amalgamation of deposit banks comprises OP Cooperative (the central cooperative) and its member credit institutions, such as OP MB, OP Financial Group member cooperative banks and financial institutions and service companies in which the above-mentioned institutions jointly hold more than half of the voting rights. 

OP Cooperative Consolidated comprises OP Cooperative, which acts as the parent entity, and entities majority-owned or wholly-owned by the parent institution or any of its subsidiaries. The central cooperative is obliged to support its member credit institution in order to prevent it from being placed into liquidation and is liable for its member credit institution’s debts which cannot be paid using the member credit institution’s capital. Each member credit institution, for its part, is liable to pay a proportion of the amount which the central cooperative has paid to another member credit institution as part of support action or to a creditor of such member credit institution in payment of an amount overdue. In the case of the central cooperative’s default, a member credit institution has unlimited refinancing liability for the central cooperative’s debts. 

Read more about OP Financial Group’s structure OP Financial Group’s Corporate Governance Statement.

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, a shareholder may make a written shareholder decision on a matter within the powers of the General Meeting. 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 2022, 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.