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79
Annual Report 2015
-79-
(B)
Maturity analysis of USD financial instruments of the Bank
UNIT: In US Thousand Dollars
December 31, 2015
Total
0-30 days
31-90 days
91-180 days
181 days–
1 year
Over 1 year
Primary funds inflow
upon maturity
$ 49,192,216 $
19,824,266 $ 6,928,530 $ 4,372,053 $
3,886,530 $
14,180,837
Primary funds outflow
upon maturity
65,418,953
23,744,666
9,451,321
6,520,937
8,066,411
17,635,618
Gap
($ 16,226,737 ) ($
3,920,400 ) ($ 2,522,791 ) ($ 2,148,884 ) ($
4,179,881 ) ($
3,454,781 )
December 31, 2014
Total
0-30 days
31-90 days
91-180 days
181 days–
1 year
Over 1 year
Primary funds inflow
upon maturity
$ 46,951,288 $
17,589,733 $ 6,585,580 $ 4,185,118 $
5,281,519 $
13,309,338
Primary funds outflow
upon maturity
67,917,707
28,432,372
7,282,055
7,072,663
8,945,456
16,185,161
Gap
($ 20,966,419 ) ($
10,842,639 ) ($
696,475 ) ($ 2,887,545 ) ($
3,663,937 ) ($
2,875,823 )
Note 1: The funds denominated in US dollars means the amount of all US dollars of the Bank.
Note 2: If overseas assets exceed 10% of total assets, supplementary information shall be disclosed.
(C)
Maturity analysis of USD financial instruments of the foreign branches
UNIT
：
In US Thousand Dollars
December 31, 2015
Total
0-30 days
31-90 days
91-180 days
181 days–
1 year
Over 1 year
Primary funds inflow
upon maturity
$ 18,389,498 $
9,879,840 $ 1,940,168 $
872,192 $
883,489 $
4,813,809
Primary funds outflow
upon maturity
21,068,444
12,305,964
1,083,854
942,448
1,188,771
5,547,407
Gap
($ 2,678,946 ) ($
2,426,124 ) $
856,314 ($
70,256 ) ($
305,282 ) ($
733,598 )
December 31, 2014
Total
0-30 days
31-90 days
91-180 days
181 days–
1 year
Over 1 year
Primary funds inflow
upon maturity
$ 17,994,406 $
10,605,599 $ 1,793,273 $
750,828 $
870,644 $
3,974,062
Primary funds outflow
upon maturity
20,208,347
12,397,830
1,644,153
1,630,766
375,053
4,160,545
Gap
($ 2,213,941 ) ($
1,792,231 ) $
149,120 ($
879,938 ) $
495,591 ($
186,483 )
(5)
Market risk
A.
Definition of market risk
Market risk refers the potential losses of the Bank’s and its subsidiaries’ on-balance-sheet and off-balance-sheet positions due to the Bank
and its subsidiaries enduring fluctuations of market prices (for example: fluctuations of market interest, exchange rates, stock prices and
price of products).
B.
Objective of market risk management
The objective of the Bank’s and its subsidiaries’ market risk management is to confine risks within a tolerable scope to avoid the
fluctuations of financial product prices impacting furture returns and the values of assets and liabilities.
C.
Market risk management policies and procedures
The Board of (Managing) Directors decided the risk tolerant limits, position limits, and loss limits. Market risk management comprises
trading book control and banking book control. Trading book operation mainly pertains to the positions held by bills and securities firms
due to market making. Policies for financial instrument trading of bank are based on back-to-back operation principle. Banking book is
based on held-to-maturity principle and adopts hedging measures.
D.
Procedures for market risk management
(A)
The Bank’s objectives of market risk management are respectively proposed by The Treasury Department and The Financial Risk
Management Center, and then Risk Control Department summarizes and reports these objectives to Risk Management Committee
of Mega Financial Holdings and the Bank’s Board of Directors for assessment.
(B)
Financial Risk Management Center not only prepares statement of market risk position and profit and loss of various financial
instruments but regularly compiles securities investment performance evaluation and reports to the Board of (Managing) Directors
for the Board’s knowledge of the Bank’s risk control over securities investment. Risk Management Department summarizes and