ING Direct 2009 Annual Report Download - page 155

2.1 Consolidated annual accounts
ING Group Annual Report 2009 153
Additional information to the consolidated balance sheet of ING Group (continued)
26 ASSETS NOT FREELY DISPOSABLE
The assets not freely disposable consist primarily of interest bearing securities pledged to secure deposits from De Nederlandsche Bank (the
Dutch central bank) and other banks and serve to secure margin accounts or are used for other purposes required by law. The assets not
freely disposable are as follows:
Assets not freely disposable
2009 2008
Investments 5,906 6,521
Loans and advances to customers 33,053 3,136
Banks 7,441 6,889
Other assets 6,350 6,438
52,750 22,984
Banks includes Amounts due from banks and balances with central banks. ING Bank N.V. has an obligation to maintain a reserve with an
average monthly balance with the Dutch central bank. In December 2009 the required monthly average was EUR 5,620 million (2008:
EUR 5,810 million). As at 31 December 2009 the balance on this reserve was EUR 354 million (2008: EUR 3,529 million).
Loans and advances to customers, not freely disposable, includes the loan to the Dutch State in connection with the Illiquid Assets Back-Up
Facility agreement as disclosed in Note 33 ‘Related parties’ and loans that for liquidity purposes have been pledged as collateral in the
United States of EUR 7 billion and Germany of EUR 5 billion.
There are no material terms and conditions relating to the collateral represented in the above table which are individually significant.
27 CONTINGENT LIABILITIES AND COMMITMENTS
In the normal course of business the Group is a party to activities whose risks are not reflected in whole or part in the consolidated
financial statements. In response to the needs of its customers, the Group offers financial products related to loans. These products
include traditional off-balance sheet credit-related financial instruments.
Contingent liabilities and commitments
Less than
1 month
1-3
months
3-12
months
1-5
years
Over
5 years
Maturity
not
applicable
Total 2009 Total 2008
Banking operations
Contingent liabilities in respect of
– discounted bills 1 1 1
– guarantees 14,492 403 1,017 2,359 3,274 21,545 22,391
– irrevocable letters of credit 5,413 4,460 1,190 757 532 12,352 10,458
– other 112 36 42 12 202 453
20,017 4,900 2,249 3,128 3,806 34,100 33,303
Insurance operations
Commitments 1,218 883 292 243 1,646 4,221
Guarantees 826 1,679 958 3,463 2,460
1,218 8909 292 1,681 1,001 5,109 6,681
Irrevocable facilities 36,284 17,539 8,351 20,130 3,531 85,835 89,081
57,519 22,447 11,509 23,550 9,018 1,001 125,044 129,065
Guarantees relate both to credit and non-credit substitute guarantees. Credit substitute guarantees are guarantees given by ING Group in
respect of credit granted to customers by a third party. Many of them are expected to expire without being drawn on and therefore do
not necessarily represent future cash outflows. In addition to the items included in contingent liabilities, ING Group has issued guarantees
as a participant in collective arrangements of national industry bodies and as a participant in government required collective guarantee
schemes which apply in different countries.
Irrevocable letters of credit mainly secure payments to third parties for a customer’s foreign and domestic trade transactions in order to
finance a shipment of goods. ING Group’s credit risk in these transactions is limited since these transactions are collateralised by the
commodity shipped and are of a short duration.
Other contingent liabilities include acceptances of bills and are of a short-term nature. Other contingent liabilities also include contingent
liabilities resulting from the normal operations of the Real Estate business including obligations under development and construction
contracts. None of the items included in Other contingent liabilities are individually significant.