These financial statements are originally issued in Indonesian language
PT BANK DKI
NOTES TO THE FINANCIAL STATEMENTS Continued For the Years Ended December 31, 2006 and 2005
In Full Rupiah
45
DRAFT
For Discussion Purpose Only April 26, 2007
To be Finalized Agreed by
: Date
:
33. Risk Management
Credit Risk Credit Risk management has been conducted based on prudential principles and fulfills the regulations that
governs by Bank Indonesia. The Bank has granting policies and the related explanations used as guidance in disbursing and managing loans. Loans disbursements are conducted through analysis of character, capital,
capacity, business condition, and availability collateral.
Placement Risk Placements transaction in the Bank consists of interbank call money, time deposits, and certificate of deposits.
Placement Risk is risk that arises because the inability of counterparts to pay the obligation either the interest or principle on the due date.
To anticipate and control the placement risk, the Bank performs: a.
Selecting and placing on bank with a good reputation and owned by the Government. b.
Spreading the risk with placements funds in several banks. c.
Monitoring the health of the bank in which Bank will place through reliable sources of information. d.
Determining limits on Treasury Division when conducting the placement. The limits consist of total limit, transaction limit and period limit.
e. Settlement Division that process all administration works that related with transaction is conducted by Treasury
Division under the Financial Control and Technology PKT for foreign currency. Rupiah transactions are conducted in Main Branch.
Market Risk Market Risk represents the potential risk for the Bank due to the changes in interest rates and foreign exchange
rate in the market where the Bank operates. Market Risk is attached in all Bank’s activities including borrowings, deposits, securities and others.
Bank has measured market risk the scoring analysis of net open position PDN.
These financial statements are originally issued in Indonesian language
PT BANK DKI
NOTES TO THE FINANCIAL STATEMENTS Continued For the Years Ended December 31, 2006 and 2005
In Full Rupiah
46
DRAFT
For Discussion Purpose Only April 26, 2007
To be Finalized Agreed by
: Date
:
The following tables represent Bank’s Net Open Position as of December 31, 2006 and 2005 which are as follows:
Assets and Administrative Liabilities and Administrative
Net Open Position Foreign Currencies
Asset Accounts Liabilities Accounts
Rp Rp
Rp
United States Dollar 75,694,991,528
12,000,491,141 63,694,500,387
Euro 1,514,289,171
339,772,224.88 1,174,516,946
Japanese Yen 4,632,078,450
4542187287 89,891,163
Australian Dollar 440,780,121
-- 440,780,121
Singapore Dollar 552,515,504
-- 552,515,504
Poundsterling --
-- --
Hongkong Dollar 1,597,633
-- 1,597,633
Net 82,836,252,407
16,882,450,653 65,953,801,754
Percentage to Capital 8.85
2006
Assets and Administrative Liabilities and Administrative
Net Open Position Foreign Currencies
Asset Accounts Liabilities Accounts
Rp Rp
Rp
United States Dollar 83,354,839,476
23,122,329,481 60,232,509,995
Euro 316,144,686
-- 316,144,686
Japanese Yen 3,958,575,893
5,513,376,064 1,554,800,170
Australian Dollar 119,651,130
-- 119,651,130
Singapore Dollar 648,745,788
-- 648,745,788
Poundsterling 2,802,046
-- 2,802,046
Hongkong Dollar 2,586,373
-- 2,586,373
Net 88,403,345,393
28,635,705,545 62,877,240,189
Percentage to Capital 9.65
2005
34. Capital Adequacy Ratio
Bank Indonesia’s Regulation No.321PBI2001 dated December 13, 2001 required the banks in Indonesia to maintain a minimum capital adequacy ratio of 8.
The capital adequacy ratio is calculated based on the Circular Letter of Bank Indonesia No.523DPNP dated September 29, 2003.
