68 / 120
65
Annual Report 2015
-65-
Unit: In US Thousand Dollars
December 31, 2015
Collateral
Net settlement
master netting
arrangements
Other credit
improvements
Total
On-Balance-Sheet Items
Financial assets at fair value through profit or loss
- debt instrument
$
- $
- $
339,519 $
339,519
- derivative instrument
43,839
18,750
-
62,589
Bills and bonds purchased under resale agreements
280,049
-
-
280,049
Bills discounted and loans
33,690,505
-
1,560,981
35,251,486
Available-for-sale financial assets - debt instrument
-
-
1,698,197
1,698,197
Held-to-maturity financial assets - debt instrument
-
-
102,490
102,490
Off-Balance-Sheet Items
Irrevocable commitments
2,351,937
-
9,985
2,361,922
Guarantees and letters of credit
1,513,734
-
73,913
1,587,647
Unit: In NT Thousand Dollars
December 31, 2014
Collateral
Net settlement
master netting
arrangements
Other credit
improvements
Total
On-Balance-Sheet Items
Financial assets at fair value through profit or loss
- debt instrument
$
- $
- $
3,631,237 $
3,631,237
- derivative instrument
1,052,093
649,138
-
1,701,231
Bills and bonds purchased under resale agreements
5,775,768
-
-
5,775,768
Bills discounted and loans
1,094,063,863
-
43,298,405
1,137,362,268
Available-for-sale financial assets - debt instrument
-
-
55,860,418
55,860,418
Held-to-maturity financial assets - debt instrument
-
-
721,344
721,344
Off-Balance-Sheet Items
Irrevocable commitments
80,259,854
-
96,152
80,356,006
Guarantees and letters of credit
51,602,976
-
2,507,105
54,110,081
Note 1: Collaterals include property, movable property, certification of authorization, securities, certificates of deposits, letter of credit and
rights in property.
(1) Value of collaterals pledged for assets that arise from lending is the lower of collateral value/ market value and maximum exposure
amount. If the collateral value cannot be obtained, value of collaterals must be assessed.
(2) Value of collaterals pledged for assets that do not arise from lending is the lower of market value and maximum exposure amount.
Note 2: Details of improvement to net settlement master netting arrangements and other credits are provided in Note 8(3) C. (C) and C. (D).
E.
Credit risk concentration
Extreme credit risk concentration will enhance risk degree, such as large amount of risk exposure concentrated on one credit product, one
client, or minor clients, or a group of clients in the same industry or with similar business or in the same area or with the same risk
characteristics. When adverse economic changes occur, a financial institution may incur a significant loss.
To avoid extreme credit risk concentration, the Bank and its subsidiaries have regulated credit limit and management rules for single
client, single business group and large amount of risk exposure. The Bank and its subsidiaries have to monitor and control the credit risk
concentration within the limit. Status of credit risk concentration must be shown in the regular risk report by industry, area/country,
collateral and other forms.
(A)
Loans and credit commitments of the Bank and its subsidiaries are shown below by industry:
Loans and credit commitments
December 31, 2015
December 31, 2014
Amount
Percentage
(%)
Amount
Percentage
(%)
NT$
US$
NT$
Individuals
Individuals
$ 450,277,202 $ 13,691,231 20.14% $ 443,733,094
19.98%
Corporation
Government organization
92,368,844 2,808,588
4.13%
92,463,661
4.16%
Financial institution,
investment and insurance
192,677,503 5,858,596
8.62%
164,001,185
7.38%
Enterprise and commerce
- Manufacturing
550,645,218 16,743,044 24.63%
612,144,001
27.56%
- Electricity and gas supply
109,820,565 3,339,229
4.91%
123,114,730
5.54%
- Wholesale and retail
176,114,363 5,354,973
7.88%
201,973,815
9.09%
- Transportation and storage
177,794,548 5,406,061
7.95%
165,402,990
7.45%
- Real estate
280,618,514 8,532,550 12.55%
244,681,778
11.02%
- Others
193,291,302 5,877,259
8.65%
160,113,447
7.21%
Others
12,084,384
367,441
0.54%
13,552,570
0.61%
Total
$ 2,235,692,443 $ 67,978,972 100.00% $ 2,221,181,271
100.00%