ING Direct 2015 Annual Report Download - page 282

Contents
Report of the
Executive Board
Corporate
Governance
Consolidated
annual accounts
Parent company
annual accounts
Other
information
Additional
information
Additional Pillar III information - continued
Funding & liquidity risk
Funding and 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.
To protect ING Bank and its depositors against liquidity risks, ING Bank maintains a liquidity buffer, which is based on the liquidity
needs across all entities under stressed conditions. ALCO Bank ensures that sufficient liquidity is maintained, in accordance with Bank
and regulatory rules and standards, including a buffer of unencumbered, high quality liquid assets.
2015
2014
Cash and holdings at central bank
13,505
4,499
Securities issued or guaranteed by sovereigns, central banks and multilateral development bank
91,551
86,863
Liquid assets eligible at central banks (not included in above)
75,807
88,199
Other liquid assets
1,875
3,320
Total
182,738
182,880
The presented distribution of liquid assets over different classes represents the liquid assets across the whole bank. This includes also
entities where restrictions may apply on transferability and convertibility due to regulatory constraints or other measures. The buffer
slightly decreased in 2015 compared to 2014, mainly due to an increase of positions in central banks reserves and securities issued or
guaranteed by sovereigns, central banks and multilateral development banks, which was more than offset by a decrease in liquid
assets eligible at central banks and other liquid assets.
As part of the liquidity buffer management, ING Bank also monitors the existing asset encumbrance. Encumbered assets represent the
on-balance sheet assets that are pledged or used as collateral for ING Bank’s liabilities. The presented templates of ING Bank’s
encumbered and unencumbered assets are based on the CRR (Part Eight) and the related guidance from the European Banking
Authority (EBA).
In 2015, the median asset encumbrance ratio for ING Bank was 18%. The comparable figures for 2014 are not based on the median
values but as per 31 December 2014. This is due to the fact that the median values for 2014 are not available and 31 December 2014
was the first data set based on the CRR requirements.
2015 median in EUR million
Carrying
amount of
en-
cumbered
assets
Fair value
of en-
cumbered
assets
Carrying
amount of
unen-
cumbered
assets
Fair value
of unen-
cumbered
assets
Assets of ING Bank
104,305
748.958
Equity instruments
6,551
6,551
12,326
12,326
Debt securities
11,477
11,394
106,763
106,697
Other assets
660
69.784
2014 in EUR million
Carrying
amount of
en-
cumbered
assets
Fair value
of en-
cumbered
assets
Carrying
amount of
unen-
cumbered
assets
Fair value
of unen-
cumbered
assets
Assets of ING Bank
99,648
-
728,954
-
Equity instruments
8,666
8,666
11,254
11,254
Debt securities
7,620
7,511
123,143
123,351
Other assets
2,200
-
76,646
-
Liquidity Buffer ING Bank
Asset encumbrance ING Bank
Asset encumbrance ING Bank
ING Bank Annual Report 2015 280