PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
118
50. CAPITAL ADEQUACY RATIO
The Capital Adequacy Ratio CAR is the ratio of the Bank’s capital over its Risk-Weighted Assets RWA. Under Bank Indonesia regulations, total capital includes core Tier I capital and supplementary capital Tier II
less investments in subsidiaries. To calculate the market risk exposure, the Bank could include the supplementary capital Tier III. Supplementary capital for taking account of market risk Tier III is short-term
subordinated loans which meet the criteria as capital components. The CAR of Bank Mandiri Bank Mandiri only as of December 31, 2006 and 2005 was 25.30 and 23.65 for CAR with credit risk, and 24.62 and
23.21 for CAR with credit risk and market risk, respectively and calculated as follows:
2006 2005
Capital: Tier I
22,011,986 20,858,866 Tier
II 8,564,284 8,575,390
Total Tier I and Tier II 30,576,270 29,434,256
Less: Investments in subsidiaries 2,210,393
2,046,481 Total capital for credit risk
28,365,877 27,387,775
Tier III - -
Total capital for credit risk and market risk 28,365,877
27,387,775 Credit
RWA 112,138,825 115,806,894
Market RWA
3,057,992 2,204,133 Total Risk-Weighted Assets
115,196,817 118,011,027
CAR for credit risk 25.30 23.65
CAR for credit risk and market risk 24.62
23.21 Minimum
CAR 8 8
Excludes the impact of deferred tax assets of Rp1,266,286 and Rp127,845 as of December 31, 2006 and 2005, and unrealized losses on available for sale securities and Government Recapitalization Bonds of Rp327,960 and Rp345,658 as of December 31,
2006 and 2005, respectively.
51. NET OPEN POSITION Net Open Position calculation as of December 31, 2006 and 2005 based on Bank Indonesia’s Regulation No.
737PBI2005 dated September 30, 2005. Based on the related regulation, banks are required to maintain aggregate and balance sheet net open position of a maximum of 20 of total capital. In accordance with
Bank Indonesia guidelines, the aggregate net open position ratio is the sum of the absolute values of the net difference between assets and liabilities denominated in each foreign currency plus the net difference of
receivables and payables of both commitments and contingencies recorded in the administrative accounts denominated in each foreign currency, which are stated in Rupiah. The Net Open Position for balance sheets
is the net difference between total assets and total liabilities in the balance sheets denominated in each foreign currency, which are stated in Rupiah.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
119
51. NET OPEN POSITION continued
