Annual Report 2006 - Rheinland Pfalz Bank

Notes LRP Group
LRP 2006
63
Other financial commitments not included in the
balance sheet
On the balance sheet date the Bank and the Group had
deposited bonds with a principal amount of W 10,344.6
million with Deutsche Bundesbank, Hauptverwaltung
Mainz, as collateral for advances against securities
(Lombard loans), of which W 4,109.2 million were utilized.
Furthermore, the Bank had pledged securities in
the principal amount of W 814.7 million to other banks
under repurchase agreements.
On the balance sheet date 31 December 2006, the
Bank’s contingent liability arising from its participation
in the Reserve Fund of Landesbanken/Girozentralen
(Sicherungsreserve) for the protection of depositors
of the public-sector banks amounted to W 0 million
for the Bank and the Group. There are no payment obligations
to the fund for the time being.
Pursuant to risk-oriented principles, the Bank’s contingent
liabilities arising from its participation in the Reserve
Fund of Landesbanken/Girozentralen has been
newly measured. For a transitional period the target
amount to increase the fund is geared to a modified total
volume. Should any event occur during this transitional
period requiring supporting measures, the transitional
period would cease, and at the same time the
newly calibrated total volume would replace the modified
total volume with immediate effect. As a result, LRP
would be obliged to make additional contributions of
W 66.6 million. Should any event occur, which requires
supporting measures, the additional contributions may
be called in immediately.
In accordance with the statutes of the Deposit Insurance
Fund, we are additionally obliged to indemnify
the German Savings Banks and Giro Association e.V.,
Berlin, as the guardian of the Reserve Fund of the Landesbanken/Girozentralen,
for any losses that they may
incur arising from measures in support of a credit institution
in which we hold an equity investment.
Financial obligations of about W 0.4 million for the Bank
and about W 1.8 million for the Group will be incurred,
respectively, as a result of initiated capital expenditures
and continuous obligations.
Liabilities from not fully paid-in capital subscriptions
relating to equity investments in non-affiliated companies
amounted to W 14.0 million for the Bank and to
W 49.1 million for the Group.
The Bank’s equity capital in Liquiditäts-Konsortialbank
GmbH, Frankfurt (Main), has been fully paid up.
Under the obligation of each shareholder to make additional
contributions in the amount of up to five times its
equity capital in said bank, LRP is liable for an amount
of W 13.8 million, commensurate with its percentage of
shares held. The Bank is obliged to make further contributions,
should other shareholders in said bank who
are members of the German Savings Banks and Giro
Association fail to meet their obligations to make additional
contributions.
The Bank is an owner of DekaBank Deutsche Girozentrale,
Berlin and Frankfurt (Main).
The Bank will, except in the case of political risk, ensure
that LRI Landesbank Rheinland-Pfalz International
S.A., Luxembourg, will be in a position to meet its obligations.