DBS BANK CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009 All amounts expressed in Rmb unless otherwise stated
[English translation for reference only]
60
45 FINANCIAL RISK
MANAGEMENT continued
45.4 Liquidity risk
Funding liquidity risk or liquidity risk is defined as the current and prospective risk arising from the inability of the Bank to meet its contractual or regulatory obligations when they
come due without incurring substantial losses. Liquidity obligations arise from withdrawals of deposits, repayments of purchased funds at maturity, extensions of credit and working
capital needs. The Bank seeks to project, monitor and manage its liquidity needs under normal as well as adverse circumstances.
The primary tool of monitoring liquidity risk is the maturity mismatch analysis, which presents the profile of future expected cashflows under defined scenarios. This is
monitored over successive time bands and across major functional currencies under normal and adverse market scenario conditions.
China ALCOMRC is the primary parties responsible for liquidity management based on framework approved by China BAC.
Limits are set on maturity mismatches over books under normal and stress scenarios and liquidity ratios. As part of liquidity management, the Group will set limits to ensure that the
funding requirements will not exceed the available funding and liquid assets available for both normal and stress scenarios.
As part of its management of liquidity risk inherent in its derivative and non-derivative financial liabilities, the Bank focuses on a number of components. These include
maintaining sufficient liquid assets, maintaining diversified sources of liquidity, and having robust internal control processes and contingency plans.
DBS BANK CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009 All amounts expressed in Rmb unless otherwise stated
[English translation for reference only]
61
45 FINANCIAL RISK
MANAGEMENT continued
45.4 Liquidity risk
continued A
Non-derivative cash flows of financial assets and liabilities
The table below presents the contractual undiscounted cash flows of the Bank under non-derivative financial assets and liabilities by remaining contractual maturities at the balance sheet date.
Within 1 month Within 3 months
3-12 months 1-5 years
Over 5 years Total
31 December 2009 Financial Liabilities
Due to other banks and financial institutions
180,879,517 44,010,234 45,142,339 -
- 270,032,090
Placements from other banks 4,797,202,425
4,346,997,171 464,860,328
1,336,295,762 -
10,945,355,686 Due
to customers
8,984,168,788 2,947,987,806 6,124,391,079 2,666,596,064
- 20,723,143,737
Total financial
liabilities 13,962,250,730 7,338,995,211 6,634,393,746
4,002,891,826 -
31,938,531,513
Financial Assets
Cash and deposits with the central bank
3,487,194,101 -
- -
- 3,487,194,101
Deposits with other banks 2,133,299,054
68,528,961 -
- -
2,201,828,015 Placements with other banks
1,005,259,390 -
- -
- 1,005,259,390
Trading assets 400,000,000
934,122,000 113,392,000
- -
1,447,514,000 Loans
and advances
1,916,459,512 4,146,620,739 9,289,134,205 10,353,139,956
6,638,195,900 32,343,550,312
Total financial assets 8,942,212,057
5,149,271,700 9,402,526,205
10,353,139,956 6,638,195,900
40,485,345,818
Net cash flows
5,020,038,673 2,189,723,511
2,768,132,459 6,350,248,130 6,638,195,900 8,546,814,305
DBS BANK CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009 All amounts expressed in Rmb unless otherwise stated
[English translation for reference only]
62
45 FINANCIAL RISK
MANAGEMENT continued
45.4 Liquidity risk
