Letno poročilo 2007 - UniCredit Banka Slovenija dd

Risk ReportRisk ReportLiquidity RiskLiquidity risk is the risk that the Bank is unable to meet its paymentobligations associated with its financial liabilities when they fall dueand to replace funds when they are withdrawn. The consequencemay be the failure to meet obligations to repay depositors and fulfillcommitments to lend.UniCredit Banka Slovenija d.d. deals with liquidity risk as a centralrisk in banking business by introducing and monitoring short-termand medium-term liquidity limits. In this context, the liquiditysituation for the next few days and also for longer periods is analyzedagainst a standard scenario and against scenarios of a general anda bank-specific liquidity crisis. The degree of liquidity of customerpositions and proprietary positions is analyzed on an ongoing basis.Procedures, responsibilities, and reporting lines in this area havebeen laid down in the liquidity policy and include a contingency planin the event of a liquidity crisis.Besides the primary resources available to the Bank, UniCredit BankaSlovenija d.d. funds itself at the liquidity centre in Bank AustriaCreditanstalt AG, Vienna at the liquidity costs of UniCredit Group.Current management of the Bank’s customer business takes accountof liquidity costs. The applicable alternative costs are debited or,on the basis of an opportunity approach, credited to the variousproducts on the assets side and the liabilities side which have aneffect on liquidity. In the current controlling process, this ensures theproper pricing of our business.188 2007 Annual Report · UniCredit Bank