Letno poročilo 2009.pdf - UniCredit Banka Slovenija dd

Business ReportBank’s Segment Performance ReviewBack OfficeIn 2009, the back-office integration continued, so that already in thebeginning of the year we included activities in this area, related tokeeping the register of domestic and foreign financial institutionsand loro accounts, as well as opening, monitoring and controlling ofnostro accounts, exchange of SWIFT keys and messages with otherbanks. Mid-year, we additionally centralized the area of realisation ofbills of exchange for natural people (individuals), which was unifiedwith the processes for bills of exchange of legal persons. In autumn2009, we implemented the centralisation of opening and maintainingtransaction accounts of legal people from the business network andthe area of corporate banking.In order to achieve higher efficiency, we also implemented systemsupport for automation of recording brokerage and custodyoperations, which is shown in the system link of analytical and bookkeepingapplications in the first half of 2009.By centralising and optimising other processes on one hand, andadditional minor automations of processes on the other hand, weachieved higher efficiency of operations, higher quality level ofactivity performance and thus lower operational risks. This was alsoproved in the regular comparative analysis of back-office activitieswithin the UniCredit Group subsidiaries in the CEE region. Thecomparative analysis process also includes an annual preparationof a plan of measures for achieving higher efficiency of backofficeoperations, which are regularly monitored and amended inaccordance with the Group guidelines and initiatives of individualback-office areas in the Bank.In accordance with the new Payment Service Directive, weimplemented adjustments of processes and consequently ofapplicative support in operations with transaction accounts and billsof exchange. In addition to this, we amended individual back-officeprocesses and applicative support in the area of credit operations onthe basis of the regulatory binding schedule for introduction of theBasel II IRB approach.We implemented additional system and process controls in backofficeactivities of brokerage and treasury operations, defined keyindicators of operational risk in all back-office areas and implementedthe necessary risk scenarios in accordance with the advancedapproach of operational risk measurement.Challenges of the Year 2010The subsiding economic crisis and the first signs of the economybeginning to grow again - both at home and abroad - give us hopethat the toughest challenges for all market participants are behindus. However, they are a reminder that caution is still necessary whenentering into different types of business relations, particularly whererisk is involved.In 2010, the banking sector will be facing the following challengesin particular:• The period of the expansive monetary policy of the EuropeanCentral Bank (ECB), in proportions that we have witnessed overthe past two years, is over. This means that possibilities forrefinancing with the ECB will be limited and, as a consequence,primary resources, which are crucial for every bank, will becomeeven more limited. There will be increased demand for themon the Slovenian market as we can expect a continuing trendof reduced dependence on foreign banks on one hand anda higher level of security for them on the other, because thegovernment’s guarantee for their repayments will still be in force.At UniCredit Banka Slovenija d.d. we will endeavour, despiterising unemployment levels and thus slower growth of primaryresources, to establish new partnerships and acquire theirfinancial resources, with the trust we have built on the market, theknow-how and the quality of our services. In cooperation with theentire UniCredit Group, the Bank will strive to offer new productswith an emphasis on risk, as well as return. In other words, wewill aim to ensure optimal proportion of these two most importantfinancial elements, especially for the clients who do not possessthe necessary financial knowledge.• During the recent financial crisis, in general, assets of variouslegal entities have deteriorated significantly. This brought aboutlowered credit capacity, illiquidity and, in some cases, insolvency.This is why UniCredit Banka Slovenija d.d. will try to find newsolutions with these clients for their existing credit arrangements,nurturing the interests of both contracting partners, with thepurpose of achieving a better business outcome with a morestable foundation.• The Bank is interested in and will endeavour to participate in thefinancing or co-financing of new investment projects with thecurrent financial resources at our disposal and in collaborationwith domestic and foreign investors, while simultaneouslymeeting the financing needs of the state of Slovenia. Consideringthe fact that Slovenian clients are increasing their presenceas investors on the markets where the UniCredit Group has itsbusiness network, the Bank will invest additional efforts intoensuring that such business participations achieve the best146 2009 Annual Report · UniCredit Bank