Annual Report 2015
119
21 RISK MANAGEMENT
(continued)
21.2 Credit risk
(continued)
21.2.1 Maximum exposure to credit risk without taking account of any collateral and other credit enhancements
The table below shows the Group’s maximum exposure to credit risk:
Gross maximum exposure
2015
2014
Statutory deposits with Central Banks
5,627,292
4,834,456
Due from banks
7,542,995
8,345,146
Treasury Bills
6,162,162
5,905,053
Investment interest receivable
74,400
72,136
Advances
33,007,998
27,095,407
Investment securities
8,003,640
8,203,270
Total
60,418,487
54,455,468
Undrawn commitments
5,138,615
4,697,372
Acceptances
1,108,666
742,087
Guarantees and indemnities
301,161
106,898
Letters of credit
309,110
117,716
Total
6,857,552
5,664,073
Total credit risk exposure
67,276,039
60,119,541
Where financial instruments are recorded at fair value, the amounts shown represent the current credit risk exposure
but not the maximum risk exposure that could arise in the future as a result of changes in values.
Collateral and other credit enhancements
The Group maintains credit risk exposure within acceptable parameters through the use of collateral as a risk-mitigation
tool. The amount and type of collateral required depends on an assessment of the credit risk of the counterparty.
Guidelines are implemented regarding the acceptability of types of collateral and valuation parameters.
The main types of collateral obtained are cash or securities, charges over real estate properties, inventory and trade
receivables and mortgages over residential properties and chattels. The Group also obtains guarantees from parent
companies for loans to their subsidiaries.
Management monitors the market value of collateral, requests additional collateral in accordance with the underlying
agreement, and monitors the market value of collateral obtained during its review of the adequacy of the allowance for
impairment losses.
