ING Direct 2009 Annual Report Download - page 225

ING Bank
Real Estate Exposure banking books recorded as fair value through P&L
2009 Residential Office Retail Industrial Other Total
Europe 357 196 94 224 871
Americas 146 93 91 1,040 220 1,590
Australia 18 24 298 121 32 493
Asia 34 24 267 325
Total 198 498 852 1,255 476 3,279
Real Estate Exposure banking books recorded as fair value through P&L
2008 Residential Office Retail Industrial Other Total
Europe 1 893 454 133 98 1,579
Americas 237 172 234 1,199 295 2,137
Australia 3 93 261 126 51 534
Asia 244 99 278 719 647
Total 485 1,257 1,227 1,465 463 4,897
ING Bank’s real estate exposure revalued through P&L has decreased as a result of value declines, outflow of investments in funds and
sales. Europe’s real estate exposure recognised EUR 80 million of fair value changes and was not severely impacted compared to other
regions. However, sales and outflow within funds of EUR 650 million decreased European real estate exposure. Exposure in the Americas
was negatively impacted by fair value changes in the Summit portfolio (EUR 290 million) and other US exposures (EUR 200 million). The
sale of Canadian assets (EUR 160 million), partly offset by the Canadian dollar appreciation, contributed to a further decrease in exposure.
Exposure in Australia decreased slightly because of negative fair value changes (EUR 160 million) partly offset by the Australian dollar
appreciation. Asia’s real estate exposure decreased mainly due to the sale of assets and outflow within funds (EUR 250 million) and
negative fair value changes (EUR 70 million).
Real Estate Exposure banking books not revalued through P&L
2009 Residential Office Retail Industrial Other Total
Europe 515 1,392 846 74 463 3,290
Americas 95 140 235
Australia 815 37 99 159
Total 618 1,547 883 74 562 3,684
Real Estate Exposure banking books not revalued through P&L
2008 Residential Office Retail Industrial Other Total
Europe 644 1,500 853 81 359 3,437
Americas 78 158 724 267
Australia 22 187 147 257
Total 744 1,659 947 81 530 3,961
ING Bank’s real estate exposure not revalued through P&L has decreased. Main changes as a result of impairments (EUR 620 million) and
net investments (EUR 290 million) are observed in Europe and Australia, partly offset by the AUD appreciation.
ING BANK – LIQUIDITY RISK
As with other bank market risks, liquidity risk falls under the supervision of the ALCO function within ING Bank with ALCO Bank as the
highest approval authority.
Definition
Liquidity risk is the risk that ING Bank or one of its subsidiaries cannot meet its financial liabilities when they come due, at reasonable cost
and in a timely manner. Liquidity risk can materialise both through trading and non-trading positions. Within ING Bank the liquidity risk
framework has been determined by ALCO Bank, which bears the overall responsibility for liquidity risk. The liquidity risk framework is
further cascaded down the organisation under the responsibility of the regional and local ALCOs. The main objective of ING’s liquidity risk
framework is to maintain sufficient liquidity in order to ensure safe and sound operations. For this purpose liquidity risk is considered from
three different angles namely from a structural, tactical and a contingency point of view.
2.1 Consolidated annual accounts
Risk management (continued)
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