26. Assets pledged as security for liabilities
Significant accounting policies
In the financial statement, the Group presents separately assets securing liabilities, where the recipient has the right to sell these assets or exchange them for another security
Classification of assets to individual measurement categories is made in accordance with the principles of determining the business model and assessing the characteristics of the contractual cash flows, referred to in the Note 5.4.
Financial data
| TYPE OF TRANSACTION AS AT 31.12.2021 | SECURITY | CARRYING VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES | NOMINAL VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES | VALUE OF LIABILITIES SUBJECT TO SECURITY |
| Repo transactions | Bonds held for trading (measured at fair value through profit or loss) | 48,590 | 49,104 | 48,474 |
| Repo transactions | Bonds measured at fair value through other comprehensive income | 797,623 | 800,000 | 799,631 |
| Total | 846,097 | 849,104 | 848,221 |
| TYPE OF TRANSACTION AS AT 31.12.2020 | SECURITY | CARRYING VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES | NOMINAL VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES | VALUE OF LIABILITIES SUBJECT TO SECURITY |
| Repo transactions | Bonds held for trading (measured at fair value through profit or loss) | 455,011 | 441,155 | 454,765 |
| Repo transactions | Bonds measured at fair value through other comprehensive income | 287,917 | 258,000 | 287,726 |
| Total | 742,928 | 699,155 | 742,491 |
The collateral is established in line with the applicable money market standards for this type of transaction.
Apart from assets pledged as security for liabilities presented separately in the financial statement, the Group also identifies liabilities do not meet the criterion of separate presentation in accordance with IFRS 9.
| TYPE OF TRANSACTION AS AT 31.12.2021 | SECURITY | CARRYING VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES | NOMINAL VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES | VALUE OF LIABILITIES SUBJECT TO SECURITY |
| Coverage of Fund for protection of guaranteed assets to the benefit of the Bank Guarantee Fund | Bonds | 781,770 | 740,000 | – |
| Coverage of payment commitments to the guarantee fund for the Bank Guarantee Fund | Bonds | 185,172 | 180,000 | 156,353 |
| Coverage of payment commitments to the resolution fund for the Bank Guarantee Fund | Bonds | 389,905 | 373,400 | 309,539 |
| Lombard and technical loan | Bonds | 5,480,924 | 5,800,164 | – |
| Other loans | Bonds | 300,272 | 297,700 | 276,327 |
| Debt securities issued | Loans, bonds | 1,402,335 | 1,405,857 | 1,086,532 |
| Coverage of the Guarantee Fund for the Settlement of Stock Exchange Transactions to Central Securities Depository (KDPW) | Bonds, cash deposits | 28,013 | 28,013 | – |
| Derivatives | Bonds | 187,753 | 182,509 | 152,687 |
| Uncommitted Collateralized Intraday Technical Overdraft Facility Agreement | Bonds | 32,196 | – |
| TYPE OF TRANSACTION AS AT 31.12.2020 | SECURITY | CARRYING VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES | NOMINAL VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES | VALUE OF LIABILITIES SUBJECT TO SECURITY |
| Coverage of Fund for protection of guaranteed assets to the benefit of the Bank Guarantee Fund | Bonds | 704,821 | 660,000 | – |
| Coverage of payment commitments to the guarantee fund for the Bank Guarantee Fund | Bonds | 145,331 | 140,000 | 130,265 |
| Coverage of payment commitments to the resolution fund for the Bank Guarantee Fund | Bonds | 306,999 | 292,800 | 267,598 |
| Lombard and technical loan | Bonds | 5,852,305 | 5,628,888 | – |
| Other loans | Bonds | 361,456 | 349,400 | 302,880 |
| Debt securities issued | Loans, bonds | 1,837,586 | 1,846,458 | 1,319,273 |
| Coverage of the Guarantee Fund for the Settlement of Stock Exchange Transactions to Central Securities Depository (KDPW) | Bonds, cash deposits | 43,034 | 43,034 | – |
| Derivatives | Bonds | 34,389 | 33,128 | 11,252 |
| Uncommitted Collateralized Intraday Technical Overdraft Facility Agreement | Bonds | 42,345 | 32,304 | – |
The establishment of securities is a consequence of:
- in the case of items relating to Bank Guarantee Fund – binding provisions of the Law on Banking Guaranty Fund BFG,
- in the case of item relating to ‘Lombard and technical loan’ – policy and standards, applied by the National Bank of Poland NBP,
- in case of items relating to ‘Other loans’ and ‘Derivatives’ – terms and conditions of the agreement, entered between the Bank and its clients,
- in case of item relating to Central Securities Depository KDPW – with the status of the clearing member for brokerage transactions.