54. Offsetting financial assets and financial liabilities
Report Online
2020
The Group enters into offsetting arrangements, i.e. International Swaps and Derivatives Association Master Agreements (ISDA) and Global Master Repurchase Agreements (GMRA), which make it possible to offset financial assets and liabilities (final deduction and settlement of the transaction so-called close out netting) in the event of an infringement with respect to one of the parties of the agreement. These agreements are of particular importance to mitigate the risk posed by derivative instruments, because they enable offsetting both matured liabilities (mitigating the settlement risk) and non-matured liabilities of the parties (mitigating the pre-settlement risk). However, these agreements do not meet the requirements set out in IAS 32, because the right to offset is conditional on the occurrence of a specific future event (instances of infringement).
Exposures arising from derivatives are further secured by margin deposits provided by counterparties as part of executing CSA (Credit Support Annex).
OFFSETTING ASSETS | Total financial assets | Derivatives | Repo transactions |
---|---|---|---|
31.12.2020 | |||
Recognized financial assets, gross | 6 464 | 6 464 | – |
Financial liabilities subject to offsetting, gross | (5) | (5) | – |
Financial assets recognized in the statement of financial position, net | 6 459 | 6 459 | – |
Amounts subject to enforceable framework agreement or similar agreement concerning offsetting, including related to: | 1 093 | 1 093 | – |
(i) recognized financial instruments which do not meet the offsetting criteria | 516 | 516 | – |
(ii) financial collateral (including cash) | 577 | 577 | – |
Net amount | 5 366 | 5 366 | – |
OFFSETTING LIABILITIES | Total financial liabilities | Derivatives | Repo transactions |
---|---|---|---|
31.12.2020 | |||
Recognized financial liabilities, gross | 6 487 | 6 487 | – |
Financial assets subject to offsetting, gross | (5) | (5) | – |
Financial liabilities recognized in the statement of financial position, net | 6 482 | 6 482 | – |
Amounts subject to enforceable framework agreement or similar agreement concerning offsetting, including related to: | 993 | 993 | – |
(i) recognized financial instruments which do not meet the offsetting criteria | 516 | 516 | – |
(ii) financial collateral (including cash) | 477 | 477 | – |
Net amount | 5 489 | 5 489 | – |
OFFSETTING ASSETS | Total financial assets | Derivatives | Repo transactions |
---|---|---|---|
31.12.2019 | |||
Recognized financial assets, gross | 4 521 | 3 440 | 1 081 |
Financial assets recognized in the statement of financial position, net | 4 521 | 3 440 | 1 081 |
Amounts subject to enforceable framework agreement or similar agreement concerning offsetting, including related to: | 2 486 | 2 486 | – |
(i) recognized financial instruments which do not meet the offsetting criteria | 1 744 | 1 744 | – |
(ii) financial collateral (including cash) | 742 | 742 | – |
Net amount | 2 035 | 954 | 1 081 |
OFFSETTING LIABILITIES | Total financial liabilities | Derivatives | Repo transactions |
---|---|---|---|
31.12.2019 | |||
Recognized financial liabilities, gross | 3 513 | 3 513 | – |
Financial liabilities recognized in the statement of financial position, net | 3 513 | 3 513 | – |
Amounts subject to enforceable framework agreement or similar agreement concerning offsetting, including related to: | 2 540 | 2 540 | – |
(i) recognized financial instruments which do not meet the offsetting criteria | 1 744 | 1 744 | – |
(ii) financial collateral (including cash) | 796 | 796 | – |
Net amount | 973 | 973 | – |