2011 Annual Report - BDO

NOTES TOFINANCIAL STATEMENTS2010More MoreOne to than three than one Morethree months to year to than five Non-ratemonths one year five years years sensitive TotalResources:Due from BSP P 5,000 P - P - P - P 2,056 P 7,056Due from other banks 1,159 - - - - 1,159Investments 4,109 1,542 3,266 6,548 3,223 18,688Loans and receivables 836 147 1,748 779 87 3,597Other resources - - - - 119 119Total Resources 11,104 1,689 5,104 7,327 5,485 30,619Liabilities and EquityDeposit liabilities 12,649 1,445 5,638 308 1,841 21,881Bills payable 2,427 - 24 - 7 2,458Other liabilities - - - - 1,809 1,809Total Liabilities 15,076 1,445 5,662 308 3,657 26,148Equity - - - - 4,471 4,471Total Liabilities andEquity 15,076 1,445 5,662 308 8,128 30,619On-book Gap ( 3,972 ) 244 ( 648 ) 7,019 ( 2,643 ) -Cumulative On-bookGap ( 3,972 ) ( 3,728 ) ( 4,376 ) 2,643 - -Contingent Resources 13,865 5,686 8,800 2,420 - 30,771Contingent Liabilities 13,811 5,703 8,700 2,417 - 30,631Off-book Gap 54 ( 17 ) 100 3 - 140Cumulative Total Gap ( P 3,918 ) ( P 3,691 ) ( P 4,239 ) P 2,783 P 140 P 140The Bank’s interest rate risk is measured as a component of the VaR model presented in Note2.15.02.2.15.03 Liquidity RiskLiquidity risk is the risk that there will be insufficient funds available to adequately meet thecredit demands of the Bank’s customers and repay deposits on maturity. The Bank managesliquidity risk by holding sufficient liquid assets of appropriate quality to ensure short-termfunding requirements are met and by maintaining a balanced loan portfolio which is repricedon a regular basis. In addition, the Bank seeks to maintain sufficient liquidity to take advantageof interest rate and exchange rate opportunities when they arise.The analyses of the maturity groupings of resources, liabilities and equity as of December 31,2011 and 2010, in accordance with the account classifications of the BSP, are presented in thesucceeding page (amounts in millions). The liability balances disclosed in the following tablesare based on contractual undiscounted cash flows. Such undiscounted cash flows may differfrom the amounts included in the statement of financial position because certain items in thestatement of financial position are based on discounted cash flows.