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its paymentobligations associated with its financial liabilities when they fall dueand to replace funds when they are withdrawn.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.<strong>UniCredit</strong> <strong>Banka</strong> <strong>Slovenija</strong> 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, <strong>UniCredit</strong> <strong>Banka</strong><strong>Slovenija</strong> d.d. funds itself at the liquidity centre in Bank AustriaCreditanstalt AG, Vienna at the liquidity costs of <strong>UniCredit</strong> 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 <strong>2007</strong> Annual Report · <strong>UniCredit</strong> Bank
Balance sheet, due to maturity on 31. 12. <strong>2007</strong>Position Content Total On demand Up to 1 month 1 - 3months3 - 12monthsEUR 1,000A. 1. Cash and cash balances with central banks 27,753 27,753 - - - - -A. 2. Financial assets held for trading 189,263 - 135,739 1,317 5,001 35,516 11,689A. 3. Financial assets designated at fair value through profitor loss1 - 5yearsOver 5years20,444 - 1,039 26 3,833 15,181 366A. 4 . Available-for-sale financial assets 115,377 - 298 486 15,327 20,968 78,299A. 5. Derivatives - hedge accounting 1,818 - - - 300 834 684A. 6 . Loans and receivables 1,743,388 9,403 146,304 62,979 373,967 649,454 501,282- to banks 148,164 8,416 80,509 6,650 17,554 32,089 2,946- to customers 1,595,225 987 65,795 56,329 356,412 617,365 498,336A. 7 . Held-to-maturity financial assets - - - - - - -A. 8 . Tangible assets 6,442 - - - - - 6,442A. 9 . Intangible assets 7,049 - - - - - 7,049A. 10. Tax assets 8,234 - - - 4,753 3,482 -- current tax assets 4,753 - - - 4,753 - -- deferred tax assets 3,482 - - - - 3,482 -A. 11. Other assets 12,924 - 5,171 73 2,203 5,477 -Total assets (1) 2,132,693 37,155 288,551 64,880 405,384 730,913 605,810P. 1. Financial liabilities held for trading 50,445 - 735 530 4,293 36,621 8, 266P. 2. Derivatives - hedge accounting 91 - - - 2 83 6P. 3. Financial liabilities measured at amortised cost 1,904,250 314,602 362,442 226,414 240,346 638,574 121,872- time deposits to banks 948,099 4,255 77,490 165,975 153,391 525,836 21,152- time deposits to customers 721,539 310,347 270,975 57,776 76,998 2,981 2,461- loans to banks 234,612 - 13,977 2,663 9,956 109,756 98,259P. 4. Provisions 1,071 - 193 45 194 396 243P. 5. Tax liabilites 2,915 - - - - 2,915 -- current tax liabilities - - - - - - -- deferred tax liabilities 2,915 - - - - 2,915 -P. 6. Other liabilites 10,306 - 8,071 665 1,439 96 35P. 7. Share capital 16,258 - - - - - 16,258P. 8. Share premium account 61,885 - - - - - 61,885P. 9. Fair value reserves (502) - - - - - (502)P. 10. Retained earnings 78,383 - - - - - 78,383P. 11. Net profit for the year 7,591 - - - - - 7,591Total liabilities and equity (2) 2,132,693 314,602 371,442 227,654 246,273 678,686 294,036Inconsistency (1)-(2) - (277,447) (82,891) (162,774) 159,110 52,227 311,77427 Forecasted outflow based on commitments andcontingent liabilities (3)5,765,607 - 166,284 92,011 553,393 4,253,026 700,893Total inconsistency (1)-(2)-(3) (5,765,607) (582,646) (465,313) (418,220) (255,909) (4,189,353) (9,709)Total cumulative inconsistency (427,103) (892,416) (1,310,636) (1,566,545) (5,755,898) (5,765,607)<strong>UniCredit</strong> Bank · <strong>2007</strong> Annual Report 189