Annual Report 2012 - Raiffeisen Bank Kosovo JSC

4.3 Liquidity risk
Liquidity risk is the risk that the Bank will encounter difficulty in meeting obligations from its financial liabilities. The Bank
is exposed to daily calls on its available cash resources from current accounts, maturing deposits, loan draw downs and
guarantees. The liquidity risk is managed by the Management of the Bank.
The Bank holds mid to long term assets and due to market conditions, finances its portfolio with short term debt. In this
process the Bank inherits liquidity risk pertaining to maturity mismatches. The risks if managed correctly are acceptable
risks. It is unusual that the bank matches its maturities. The Bank issues long term assets, such as PI loans and Mortgages,
and these portfolios are mainly financed by demand deposits and Term Deposits up to 1 year. The management
receives on a daily basis the liquidity ratio information of the Bank, and also on a weekly basis receives a liquidity report
sorted by Business segment. Since the Bank issues mid to long term assets, and finances it with short to mid-term debt, it
is also exposed to interest rate risk.
The table below shows assets and liabilities as at 31 December 2012 and 2011 by their remaining contractual maturity.
Some of the assets however, may be of a longer term nature; for example loans are frequently renewed and accordingly
short term loans can have longer term duration.
Demand and less From 1 to 3 From 3 to 12 More than Non -
than 1 month months months 12 months Specific Total
Assets
Cash and cash equivalents and 12,668 - - - 73,550 86,218
mandatory liquidity reserve
Due from other banks 46,103 - - - - 46,103
Loans and advances to customers 35,785 58,521 128,461 178,299 - 401,066
Other Loans 533 - 1,753 18,588 - 20,873
Investment securities 17,338 17,270 4,216 25,277 - 64,102
Other assets - - 270 - - 270
Total financial assets 112,427 75,791 134,700 222,164 73,550 618,632
Liabilities
Deposits from customers 366,590 23,205 104,151 19,923 - 513,869
Deposits and borrowings from banks 522 - 2,600 1,091 - 4,213
Other liabilities - - 7,869 - - 7,869
Total financial liabilities 367,112 23,205 114,620 21,014 - 525,951
Net gap position at 31 December 2012 (254,685) 52,586 20,080 201,150 73,550 92,681
Demand and less From 1 to 3 From 3 to 12 More than Non -
than 1 month months months 12 months Specific Total
Assets
Cash and cash equivalents and 13,464 - - - 76,901 90,365
mandatory liquidity reserve
Due from other banks 85,910 - - - - 85,910
Loans and advances to customers 46,351 43,788 132,586 179,385 - 402,110
Other Loans 508 - 3,821 26,591 - 30,920
Investment securities - 947 22,330 39,154 442 62,873
Other assets - - 340 - - 340
Total financial assets 146,233 44,735 159,077 245,130 77,343 672,518
Liabilities
Deposits from customers 449,133 20,571 77,749 9,823 - 557,277
Deposits and borrowings from banks 103 90 4,155 8,336 - 12,684
Other liabilities - - 11,246 - - 11,246
Total financial liabilities 449,236 20,661 93,150 18,159 - 581,207
Net gap position at 31 December 2011 (303,003) 24,074 65,926 226,971 77,343 91,311
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Addresses Glossary Financial Statements Segment Reports Overview Macroeconomic Environment RBI Vision and Mission Management Board Introduction