25. Assets pledged as security for liabilities
[Financial notes are presented in PLN thousand]
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 Note 5.4.
Financial data
| TYPE OF TRANSACTION AS AT 31.12.2022 | 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) | 50 923 | 56 393 | 50 942 |
| Repo transactions | Bonds measured at fair value through other comprehensive income | 878 603 | 914 446 | 879 014 |
| Total | 929 526 | 970 839 | 929 956 |
| 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) | 48 474 | 49 104 | 48 590 |
| Repo transactions | Bonds measured at fair value through other comprehensive income | 797 623 | 800 000 | 799 631 |
| Total | 846 097 | 849 104 | 848 221 |
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 31.12.2022 | 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 | 741 156 | 710 000 | – |
| Coverage of payment commitments to the guarantee fund for the Bank Guarantee Fund | bonds | 310 489 | 300 000 | 173 465 |
| Coverage of payment commitments to the resolution fund for the Bank Guarantee Fund | bonds | 616 945 | 654 250 | 372 593 |
| Lombard and technical loan | bonds | 6 482 909 | 6 647 643 | – |
| Other loans | bonds | 275 753 | 283 900 | 206 521 |
| Debt securities issued | loans, bonds | 1 261 765 | 1 297 095 | 944 159 |
| Coverage of the Guarantee Fund for the Settlement of Stock Exchange Transactions to Central Securities Depository (KDPW) | bonds, cash deposits | 36 334 | 36 334 | – |
| Derivatives | bonds | 37 314 | 36 453 | 14 655 |
| Uncommitted Collateralized Intraday Technical Overdraft Facility Agreement | bonds | 28 195 | 32 829 | – |
| 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 | 39 029 | 32 196 | – |
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 issue of debt securities – binding provisions of the Law on Mortgage Bonds and Mortgage Banks,
-
- 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.