Landeskreditbank Baden-Württemberg - L-Bank

GLOSSARY
This glossary describes certain terms that are used in our financial statements. It is not a part of our financial
statements.
Cash on hand, cash at Federal Central Bank and cash in postal giro accounts
We are obligated to deposit minimum reserves with the Federal Central Bank and other central banks
pursuant to the Regulation on Minimum Reserves of September 12, 2003 issued by the European Central Bank.
Some of our deposits with the Federal Central Bank included in this item consist of such minimum reserves. See
“—Regulation and Supervision of L-Bank in Germany—Powers of the Federal Central Bank Affecting L-Bank’s
Conduct of Business.”
Receivables from credit institutions
This item includes all amounts due from German and non-German banks, unless the obligations are notes,
bonds or other interest bearing securities that are eligible for listing on a stock exchange (entered in Item 4 b)).
Receivables from customers
This item includes all amounts due from customers that are not credit institutions, unless the obligations are
notes, bonds or other interest bearing securities that are eligible for listing on a stock exchange (entered in Item 4
b)).
This Item 3 encompasses mortgage-backed loans (Hypothekendarlehen) made by us that meet certain
requirements of the Law on Mortgage-backed Bonds and Similar Securities Issued by Public Law Credit
Institutions (Gesetz über die Pfandbriefe und verwandten Schuldverschreibungen öffentlich-rechtlicher
Kreditanstalten). Such loans may be used as security (cover) for mortgage-backed bonds issued by us
(Hypothekenpfandbriefe). This Item 3 also includes loans to public authorities and entities organized under
public law (Kommunalkredite). These are loans, e.g., to municipalities, counties, special purpose associations of
municipalities and counties (Zweckverband), and other entities and associations established under German public
law (Anstalten and Körperschaften), and to member states of the European Union and their territorial
subdivisions meeting certain requirements, and loans guarantied by such entities. Such loans may be used as
security (cover) for public debt-backed bonds issued by us (Öffentliche Pfandbriefe, also referred to as
Kommunalobligationen). See “—Business—Sources of Funds.”
Notes and other interest-bearing securities
This item includes interest-bearing debt securities that are eligible for listing on a stock exchange, such as
bearer securities (Inhaberschuldverschreibungen), negotiable debt securities that are part of an offering, and
other money market instruments (such as commercial paper, euro-notes and certificates of deposit), medium-term
notes (with maturities of generally 3-6 years) in bearer form (Kassenobligationen) and book-entry securities
(Schuldbuchforderungen). This item may include securities that are part of the trading portfolio, securities that
form part of the fixed assets portfolio and securities that are part of the liquidity portfolio. See “—Summary of
Material Differences between Generally Accepted German and United States Accounting Principles.”
Bonds that are eligible as collateral for loans under the open-market operations and the marginal lending
facility at the European Central Bank must be presented separately in the balance sheet (Item 4 aa, ab, ba and bb;
„...eligible as collateral at the Federal Central Bank) even if they are already serving as collateral for other
obligations. Eligible securities are set forth on a list of securities eligible as collateral maintained by the
European Central Bank. Loans under the marginal lending facility are short-term loans extended by the Federal
Central Bank (acting for the European Central Bank in Germany) to banks that are secured by collateral and
usually bear interest at a rate of 1% over the rate for open-market operations.
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