Below is an overview of the key items on our balance sheet and income statement, as well as our key risk indicators.

Dexia Kommunalbank at a glance:

Market and interest rate risk are particularly relevant to Dexia Kommunalbank Deutschland's risk management system. Foreign currency risks are generally eliminated by hedging.

Management uses two risk indicators based on market values – basis point value (BPV or PV01) and value at risk (VaR) – to manage interest rate risks. BPV describes the potential loss of the net present value of the overall portfolio given a parallel shift in interest rates at all maturities by 100 bp. PV01 describes the potential loss given a 1 bp shift per defined maturity range. The value-at-risk method (VaR) provides the maximum anticipated loss which may occur in normal market conditions during a pre-defined holding period, based on a given probability. The Bank calculates VaR on a daily basis, in particular based on a 99 % confidence level and a ten-day holding period.

Dexia Kommunalbank Deutschland's historical risk: