The staff of Deutsche Hypo ... ... the basis of our success

··· 34 ···
All occurrences of losses were recorded and ana-
lysed.
Deutsche Hypo can state that it does not face any
risks over and above the standard level of risk
encountered within its field of business.
·· RECENT DEVELOPMENTS
New requirements were introduced during the
financial year under review with regard to risk
management.
On 20 December 2005 the Federal Financial
Supervisory Authority (BaFin) published its final
version of its “Minimum Requirements for Risk
Management” (MaRisk), the aim of which is to
implement key quality-related elements of Basel II
into national law. The focus lies on the risk
management of banks and financial service-provi-
ders and the supervisory review process, which is
to become binding as of 1 January 2007 through
EU directives.
The new MaRisk brings together the individual
requirements in terms of MaH, MaK and MalR,
with which the Bank has long been familiar, whilst
also incorporating some new areas, including
interest rate risk.
The Federal Financial Supervisory Authority itself
regards MaRisk as the basis for a new qualitative
supervision of banking in Germany. The opening
provisions grant the institutions the freedom to be
flexible in implementing the new MaRisk in line
with their size and area of activity.
For its part, Deutsche Hypo already complies with
a significant number of the requirements of
MaRisk in practice. The remaining outstanding
requirements will be implemented in the course
of 2006.
·· MEMBERSHIP OF ING GROUP
ING Groep N.V., Amsterdam, has been the majori-
ty shareholder of ING Bank Deutschland AG (ING
BHF-Bank Aktiengesellschaft until 28 December
2004) since 21 September 1999.
As announced, ING Bank Deutschland AG holds
the majority of the share capital of Deutsche
Hypothekenbank (Actien-Gesellschaft), Hanover/
Berlin. The Bank's Board of Managing Directors
has produced a report on relations with affiliated
companies, and declared as follows, in accordance
with Section 312, paragraph 3 of the Joint Stock
Companies Act:
"With regard to the legal transactions listed in
the report on relations with affiliated companies,
Deutsche Hypothekenbank (Actien-Gesellschaft)
has - on the basis of the circumstances which
were known to it at the time of the respective
legal transaction - consistently been in receipt of
an appropriate counter-performance.
It has not been disadvantaged by any measures
taken or by any lack of measures during the year
under review at the instigation of or in the inter-
ests of ING Groep N.V. and/or ING Bank
Deutschland AG or any affiliated companies."