ING Direct 2015 Annual Report Download - page 137

Contents
Who we are
Report of the
Management
Board
Corporate
Governance
Consolidated
annual accounts
Parent company
annual accounts
Other
information
Additional
information
Notes to the Consolidated annual accounts of ING Bank - continued
The principal subsidiaries of ING Bank N.V. and their statutory place of incorporation or primary place of business are as follows:
Proportion of ownership
and interest held
by the Bank
2015
2014
Subsidiary
Country
Bank Mendes Gans N.V.
The Netherlands
100%
100%
ING Lease (Nederland) B.V.
The Netherlands
100%
100%
ING Corporate Investments B.V.
The Netherlands
100%
100%
ING Real Estate B.V.
The Netherlands
100%
100%
ING België N.V.
Belgium
100%
100%
ING Luxembourg S.A.
Luxembourg
100%
100%
ING-DiBa A.G.
Germany
100%
100%
ING Bank Slaski S.A.
Poland
75%
75%
ING Financial Holdings Corporation
United States of America
100%
100%
ING Bank A.S.
Turkey
100%
100%
ING Bank (Australia) Ltd
Australia
100%
100%
ING Bank (Eurasia) Joint stock company
Russia
100%
100%
47 Structured entities
ING Bank’s activities involve transactions with various structured entities (‘SE’) in the normal course of its business. A structured entity
is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity,
such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual
arrangements. ING Bank’s involvement in these entities varies and includes both debt financing and equity financing of these entities
as well as other relationships. Based on its accounting policies, as disclosed in the section ‘Principles of valuation and determination of
results’ of these financial statements, ING establishes whether these involvements result in no significant influence, significant
influence, joint control or control over the structured entity.
The structured entities over which ING can exercise control are consolidated. ING may provide support to these consolidated
structured entities as and when appropriate. However, this is fully reflected in the consolidated financial statements of ING Bank as all
assets and liabilities of these entities are included and off-balance sheet commitments are disclosed.
ING’s activities involving structured entities are explained below in the following categories:
1 Consolidated ING originated Liquidity management securitisation programmes (‘Lions’);
2 Consolidated ING originated Covered bond programme (‘CBC’);
3 Consolidated ING sponsored Securitisation programme (‘Mont Blanc’);
4 Unconsolidated Securitisation programme;
5 Other structured entities
Credit management securitisation programmes, previously entered into by iNG Group, were unwound between 2012 and 2014. The
last programme ended in 2014 on the scheduled termination date. As at 31 December 2014, there were no remaining Credit
management securitisation programmes.
1. Consolidated ING originated Liquidity management securitisation programmes (‘Lions’)
ING Bank enters into liquidity management securitisation programmes in order to obtain funding and improve liquidity. Within the
programme ING Bank sells ING originated assets to a structured entity. The underlying exposures include residential mortgages in the
Netherlands, Germany, Belgium, Spain, Italy and Australia.
The structured entity issues securitised notes (‘traditional securitisations’) which are eligible collateral for central bank liquidity
purposes. In most programmes ING Bank acts as investor of the securitised notes. As there are limited transfer of risks and rewards,
ING Bank continues to consolidate these structured entities.
The structured entity issues securitisation notes in two tranches, one subordinated tranche and one senior tranche, rated AAA by a
rating agency. The AAA tranche can subsequently be used by ING Bank as collateral in the money market for secured borrowings.
Companies
ING Bank Annual Report 2015 135