Annual Report - VÚB banka

(c) Liquidity risk
Liquidity risk is a measure of the extent to which
the Group may be required to raise funds to meet
its commitments associated with fi nancial instruments.
The Group maintains its liquidity profi les
in accordance with regulations laid down by the
NBS.
The Group is exposed to daily calls on its available
cash resources from overnight deposits, current
accounts, maturing deposits, loan drawdowns,
guarantees and from margin and other calls on
cash settled derivatives. The Group sets limits on
the minimum proportion of maturing funds available
to meet such calls and on the minimum level of
interbank and other borrowing facilities that should
be in place to cover withdrawals at unexpected levels
of demand.
The daily liquidity position is monitored and regular
liquidity stress-testing is performed. The daily
liquidity position is limited by a set of liquidity limits
for particular time buckets. The Group has approved
the contingency liquidity plan, which defi nes
how to identify potential liquidity problems and
how to act in liquidity crisis situations. All liquidity
policies and procedures are subject to review and
approval by ALCO and Intesa Sanpaolo.
The key measures used by the Group for managing
medium and long term liquidity are two maturity
mismatch rules.
Rule 1: Real Estate + Equity Investments