The main goal of the capital markets funding activities of SNS Bank is to finance and capitalise SNS Bank with minimal economic costs and with limited risks. SNS Bank's funding strategy has consistently been based on three pillars: diversification, commitment and being proactive.

Diversification of funding sources
Funding sources are diversified over instrument, investor type, geography and maturity

Commitment to the investor base
SNS Bank applies the policy of seeking a healthy balance between its funding requirements and the demand from investors. Commitment is shown by establishing a benchmark SNS Bank yield curve in the euro medium term note market, by maintaining a presence in and regularly returning to the chosen markets, by providing liquidity, establishing active programmes such as the Hermes securitisation programme (see Securitisation- hyperlink) ,and by being a stable and predictable issuer

Proactive view on the market
The SNS Bank funding team closely monitors trends and developments in international capital markets, at rating agencies, among regulators and in accountancy. The funding mix is continuously and gradually fine tuned by comparing different alternatives

SNS Bank appreciates the importance of debt investor relations, accompanying each new issue with an institutional marketing, maintaining an investor relations database, keeping close contact with the euro medium term note dealer panel and organising the annual SNS Bank euro medium term note dealer day. The funding needs and targets are communicated clearly to the market. Performance of brokers in SNS Bank's private placements is rewarded by mandating benchmark public transactions.

This approach has provided SNS Bank with relatively good access to international capital markets, which facilitates growth at competitive cost levels.