Prospectus - Notowania

4.1.7 Credit risk
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RISK FACTORS
instruments (such as the centralization of said products in a specific global ABS
portfolio, constantly monitored), so as to assess the lending and market risks.
For further information, reference should be made to the First Section, Chapter 9
and Chapter 20.
The assets and the balance sheet, income statement and financial solidity of the
UniCredit Group depend of the degree of credit worthiness of its customers.
In relation to the credit risk, in accordance with the role of parent company which the
Issuer performs, it – and specifically the Risk Management Division – has adopted
procedures, rules and principles which must direct, discipline and standardize the
assessment and the handling of the credit risk, in line with the principles and the best
practice applicable to the entire UniCredit Group.
The UniCredit Group is exposed to the traditional risks relating to lending activities.
Furthermore, the UniCredit Group, may be induced to grant credit on the basis of
incomplete, untrue or incorrect information, which it might otherwise not have granted
– or which in any event it would have granted, but under different conditions – if it
were in possession of all the necessary information.
Default by customers in the agreements entered into or the possible lack of or
incorrect information provided by the same with regard to their respective financial
and lending positions, could have negative effects on the balance sheet, income
statement and/or financial situation of the UniCredit Group.
The book value of impaired loans to customers as at September 30, 2009 amounted to
€27,235 million, and as a percentage of total loans to customers came to 4.82%, up
with respect to the 3.24% as at December 31, 2008. The coverage ratio of the aforementioned
loans as at September 30, 2009 came to 49.1%, compared with 52.5%
reported as at December 31, 2008.
4.1.8 Counterpart risk
The UniCredit Group trades in derivative contracts on a wide range of underlying
instruments, such as interest rates, exchange rates, shares prices/indexes, commodities
(precious metals, base metals, oil and energy products) and credit claims both with
counterparts in the financial services sector, including therein brokers and dealers,
commercial banks, investment banks, funds and other institutional customers, and
with other non-institutional customers of the Group. With reference to the UniCredit
Group’s derivative transactions, the positive fair value of the trading derivatives
stipulated with customers, defined as per the Bank of Italy Circular No. 262 dated
December 22, 2005, as at September 30, 2009, amounted to €23,768 million, of which
€3,022 million, relating to companies in the Italian sphere and €20,746 million
attributable to companies abroad. As of the same date, the negative fair value of the
trading derivatives stipulated with customers amounted in total to €15,688 million, of