COMMERZBANK AKTIENGESELLSCHAFT

Other notes
(33) Off-balance-sheet transactions
a) Contingent liabilities
Financial Statements and Management Report 2011 99
€m 31.12.2011 31.12.2010
a) Contingent liabilities from rediscounted bills of exchange credited to borrowers 1 3
b) Liabilities from guarantees and indemnity agreements 35,968 36,234
Credit guarantees 3,137 3,642
Other guarantees 25,678 25,784
Letters of credit 7,153 6,808
Total 35,969 36,237
Contingent liabilities from guarantees and indemnity
agreements are mainly related to retail banking with customers
generating commission income. Commerzbank Aktiengesellschaft
runs the risk that a claim will be made under its
contractual obligations due to a deteriorating credit quality of
b) Other commitments
the borrower. Credit risks are taken into account in the balance
sheet by creating provisions. The risk of a claim under
contingent liabilities is estimated on the basis of credit risk
parameters implemented in accordance with the German
Solvency Regulation.
€m 31.12.2011 31.12.2010
a) Repurchase commitments from sales with option to repurchase transactions – 1
b) Irrevocable lending commitments 53,479 59,640
Loans to customers 46,092 48,386
Loans to banks 5,954 8,264
Guarantees/acceptance credits/letters of credit 1,433 2,990
Total 53,479 59,641
Irrevocable lending commitments are part of Commerzbank
Aktiengesellschaft’s lending business and are not reported in the
balance sheet. Risks may arise due to the deterioration of a
customer’s credit quality, for which a corresponding provision is
created on the balance sheet.
Commerzbank Aktiengesellschaft arranges via special purpose
entities securitisations of the Bank’s own receivables as well as
of customers’ receivables portfolios. The transactions serve to
procure liquidity or to tap new sources of funding for customers
or for Commerzbank Aktiengesellschaft. In the case of direct
securitisations of the Bank’s own receivables, receivable
portfolios are derecognised from Commerzbank Aktiengesellschaft’s
balance sheet.
The liquidity facilities and back-up credit lines provided to
the securitisation vehicles are also shown under irrevocable
lending commitments. Liquidity or back-up lines may be used if
the risks relating to the underlying financial instruments
increase or the securitised paper can no longer be sold on the
market as planned.