A4 für Copyshop GB.indd - Bayerische Landesbank

More documents

Recommendations

Info

108 Report on the Bank and the Group } Bank-wide balance sheet analysis and early detection systems } Customer and portfolio limits } Limiting risk clusters } Collateral } Credit risk model } RORAC With a view to improving credit rating assessment, a uniform balance sheet analysis system was introduced throughout the Bank, comprising all of the major accounting standards (H<strong>GB</strong>, IAS, US-GAAP etc.). This system is being enhanced by the addition of budgeted balance sheets and forecasts of future balance sheet changes. Furthermore, the early detection procedure was revised and harmonised. The “intensive care” and “handling of problem loans” sub-processes were also redesigned and adjusted to meet these requirements. BayernLB limits potential losses depending on the risk profile of each product group using approaches guided by book value or market value. As well as setting limits at business partner level, the Bank carries out risk controlling at portfolio level with the help of a target portfolio. Portfolio structure limits are thus defined, e.g. for sector, country or rating category. Concentration risks in particular are taken into considera- tion. A cluster limit is determined for each borrower or liability relationship. The target portfolio is projected over several years, subjected to continual revision and, if neces- sary, changed in line with evolving business environments. Losses resulting from a counterparty’s default are fundamentally limited by the assumption and risk-oriented structuring of collateral customary in banking business. In derivatives trading, master agreements are usually concluded for the purpose of close-out netting. Some collateral agreements restrict the default risk associated with individual trading partners to an agreed maximum and authorise the call for (addi- tional) collateral should this maximum be exceeded. In 2004, the framework for calculating expected loss was significantly enhanced by the introduction of new scorecard and simulation rating methods. Furthermore, “loss given default” values (statistical loss amount in a given case of default), calculated as part of the project undertaken jointly by several German landesbanks, significantly enhance the calculation of expected losses arising from specific transactions. In order to cover unexpected loss, risks are backed by an appropriate amount of capital. In 2004, with a view to safeguarding the Bank’s return / performance, the RORAC (return on risk adjusted capital) ratio was introduced. In the current year, it was adopted for overall portfolio management. Thus, the income from a transaction, customer relationship or business area is now determined relative to the risk capital uti- lised. In the year under review, credit exposure in the Group was decreased by around EUR 0.9 billion (by EUR 7.2 billion at Bank level). In addition to the lacklustre economic trend and concomitantly lower demand for credit, this was attributable to initiatives aimed at decreasing clusters and concentrations in the credit portfolio.
Gross exposure by Group entity [%] 80 60 40 20 0 2003 2004 BayernLB Deutsche SaarLB Banque LBLux MKB Kreditbank Efficient and targeted portfolio management is based on reporting that is guided by the Bank’s strategy and observes uniform standards while taking into account risk and return aspects. In BayernLB, reports are prepared on credit and country risk, sector portfolios, and problem exposures. In the interest of economic controlling and strategic alignment of sector exposure, BayernLB uses a grouping code based on risk and added value, which breaks down exposure into 30 sector groups. Based on this system, exposure for the main sector groups is classified as follows: Gross exposure of the Group by sector [%] 60 40 20 0 2003 2004 85 83 48 53 8 8 14 13 4 4 2 3 1 2 10 10 4 3 2 2 16 13 Banks Non-profit Real estate Utilities Automotive, Other Private organisations inc. suppliers customers and sovereigns Report on the Bank and the Group 6 6 } Reporting 109 } Sector portfolio
Page 1 and 2:
Annual Report and Accounts 2004
Page 3 and 4:
LBS Bayern Corporates Business Area
Page 5 and 6:
Clear figures. Clear objectives. Th
Page 7:
Foreword by the Board of Management
Page 11 and 12:
1 Board of Management and executive
Page 13 and 14:
Dr. Rudolf Hanisch born in 1946, De
Page 15 and 16:
In transforming its business model,
Page 17 and 18:
Sparkassen-Finanzgruppe Bayern Baye
Page 19 and 20:
Financial Statements Audit Committe
Page 21 and 22:
Norbert Kastner Lord Mayor of the C
Page 25 and 26:
2 Economic situation
Page 27 and 28:
(Hartz IV) contributed to an overal
Page 30:
An open mind. Clarity. Inspiration.
Page 34 and 35:
30 BayernLB - our company } BayernL
Page 36 and 37:
32 BayernLB - our company } Restruc
Page 38 and 39:
34 BayernLB - our company } Cross-b
Page 40 and 41:
36 BayernLB - our company } Lead ar
Page 42 and 43:
38 BayernLB - our company } Coopera
Page 44 and 45:
40 BayernLB - our company Real Esta
Page 46 and 47:
42 BayernLB - our company Activitie
Page 48 and 49:
Page 50 and 51:
46 BayernLB - our company New issue
Page 52 and 53:
48 BayernLB - our company and the U
Page 54 and 55:
50 BayernLB - our company Savings B
Page 56 and 57:
Page 58 and 59:
54 BayernLB - our company } LBS Bay
Page 60 and 61:
56 BayernLB - our company } Moderni
Page 62 and 63: 58 BayernLB - our company Group ret
Page 64 and 65: 60 BayernLB - our company In 2004,
Page 66 and 67: 62 BayernLB - our company Support o
Page 68 and 69: 64 BayernLB - our company Landesban
Page 70 and 71: 66 BayernLB - our company Magyar K
Page 72 and 73: 68 BayernLB - our company Banque LB
Page 74 and 75: 70 BayernLB - our company LB(Swiss)
Page 76 and 77: 72 BayernLB - our company Corporate
Page 78 and 79: 74 BayernLB - our company } Shared
Page 80 and 81: 76 BayernLB - our company } Target
Page 82 and 83: 78 BayernLB - our company Our staff
Page 84 and 85: 80 BayernLB - our company Fostering
Page 86 and 87: 82 BayernLB - our company Public se
Page 88 and 89: 84 BayernLB - our company DKB and S
Page 90 and 91: A product is only as good as the to
Page 93 and 94: 4 Report on the Bank and the Group
Page 95 and 96: position and serves as a bridgehead
Page 97 and 98: Management report Assets, liabiliti
Page 99 and 100: Funding EUR billion Due to banks -
Page 101 and 102: EUR million 1.1. - 31.12.2004 Bayer
Page 103 and 104: Group operating expenses were down
Page 105 and 106: In the 2004 financial year, the ope
Page 107 and 108: Outlook The forecasts relating to t
Page 109 and 110: Strategy / rating Upon withdrawal o
Page 111: BayernLB’s subsidiaries (Hungaria
Page 115 and 116: Investment risk Similarly to counte
Page 117 and 118: Net exposure of the Group by countr
Page 119 and 120: Market price risk Market risk compr
Page 121 and 122: Operational risk BayernLB defines o
Page 123: 119
Page 127 and 128: 5 Report by the Board of Administra
Page 129 and 130: Report by the Board of Administrati
Page 133 and 134: Liabilities 1. Due to banks a) Paya
Page 135 and 136: Liabilities Report by the Board of
Page 139 and 140: Liabilities 1. Due to banks a) Paya
Page 141 and 142: Liabilities Report by the Board of
Page 163 and 164:
Report by the Board of Administrati
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185:
Complex enterprises demand reliabil
Page 188 and 189:
184 Advisory Boards and addresses T
Page 190 and 191:
186 Advisory Boards and addresses D
Page 192 and 193:
188 Advisory Boards and addresses B
Page 194:
190 Advisory Boards and addresses S
Page 198:
Bayerische Landesbank Brienner Stra
show all

A4 für Copyshop GB.indd - Bayerische Landesbank

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?