Instruments carying a ixed rate oreign exchange rates

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Unformatted text preview: instruments carying a ixed rate, oreign exchange rates, securities, precious metals or other comodities. The strategy o Ban is to ep mar et ris s to the minimum in that the Ban does not enter into any speculative transaction. In general the Ban ensures that an adequate hedging mechanism is in place be ore it enters into inancial mar ets or trading. Moreover, since the Ban does not deal in interest based products, the impact o the above ris s wil be very minimal. The Ban does not have positions or orward exchange contracts giving mismatches o maturity unles such ris s have ben ta en care o through some other mechanism. 42.2.1 For ign Exchang Ri Foreign exchange or curency ris arises rom the luctuation in the value o inancial instruments consequent to the changes in oreign exchange rates. The Ban 's oreign exchange exposure comprises o orward contracts, oreign curency cash in hand, balances with ban s abroad, oreign curency deposits, oreign curency placements with State Ban o Pa istan and other ban s etc. The Ban manages its oreign exchange exposure by matching oreign curency asets and liabilities. The net open position is managed within the statutory limits as ixed by the State Ban o Pa istan. ecembe 31, 2006 Asets Liabilities Of-balance shet items Net fo eign c ency expos e-------- R pes in 000 -------- Pa istan Rupe 3,964,984 (1,993,5 5) 5,19 1,976,669 United States Dolar 52,429 (24,785) (3,362) 24,282 Great Britain Pound 2,745 (2,745)- - Japanese Yen 1,979- (1, 24) 955 Euro 1,943 (752) (8 4) 387 U.A.E Dirham 594- - 4, 24,674 (2, 21,787)- 2, 42.2.2 E uity Po ition Ri The Ban had no signi icant open exposure to equities as o year end 2 6. 57 42.2.3 Mi match of Profit / Yi ld Rat S n itiv A t and Liabiliti On-balanc h t financial in trum nt Asets Cash and balances with treasury ban s- 338,222--------- 338,222 Balances with other ban s 5.13% 79 ,7 9 79 ,7 9--------- Due rom inancial institutions 12.55% 412,131- 412,131-------- Investments 8.88% 493, 8------ 261,876- 9,576 221,556 Financings 1 .52% 959,133 11,775 15,386 165,399 376,324 1 2, 84 111,967 1 2,367 56,853 16,978- Other asets- 59 , 43--------- 59 , 43 3,583,246 8 2,484 427,517 165,399 376,324 1 2, 84 111,967 364,243 56,853 26,554 1,149,821 Liabilities Bils payable- 23,83--------- 23,83 Due to inancial institutions 6.5% 5 ,- 5 ,-------- Deposits and other acounts 4.98% 1,778, 8 937,438 365,915 25,139 27,915 2 4,6 57,991-- 358,81 Sub-ordinated loans----------- Liabilities against asets subject to inance lease----------- Other liabilities- 169,949--------- 169,949 2, 21,787 937,438 415,915 25,139 27,915 2 4,6 57,991-- 552,589 On-balanc h t gap 1,561,459 (134,954) 11,6 2 14 ,26 348,4 9 1 1,884 1 7,367 3 6,252 56,853 26,554 597,232 Total Yi ld / Profit Ri S n itivity Gap (134,954) 11,6 2 14 ,26 348,4 9 1 1,884 1 7,367 3 6,252 56,853 26,554 597,223 Cumulativ Yi ld/Profit Ri S n itivity Gap (134,954) 11,6 2 14 ,26 348,4 9 1 1,884 1 7,367 3 6,252 56,853 26,554 597,223 D c mb r 31, 2006---------------------------- Rup in `000 ---------------------------- Ef ctiv yi ld / Profit rat...
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instruments carying a ixed rate oreign exchange rates...

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