Annual report 2004 (PDF, 4141 kB) - Unicredit Bank

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Liquidity risk
The Bank is exposed to daily calls on its available cash resources from overnight deposits,
current accounts, maturing deposits, loan draw downs, guarantees and from margin and other
calls on cash settled derivatives. The Bank does not maintain cash resources to meet all of
these needs as experience shows that a minimum level of reinvestment of maturing funds can
be predicted with a high level of certainty. The Board 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.
In case of unexpected outflow of liquid resources, the Bank has a back up portfolio of highly
liquid government bonds and back up liquidity line with its main shareholder.
The table below analyses assets and liabilities of the Bank into relevant maturity bands based
on the remaining period at the balance sheet date to the contractual maturity date.
Debt securities can be realised on financial markets prior to their contractual maturity.
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