37. Pledged assets

Assets may be pledged as collateral for repo/sell-buy-back transactions, derivatives contract with other banks. Collateral may be also placed due to stock market derivatives such as futures, options and participation in stock market.

Collateral may be placed in different form (e.g. cash, securities, pledged assets).

Similarly, customers establish collateral on their assets to secure the transaction with the Bank. If securities are subject to collateral (in buy-sell-back transaction) they can be re-pledged in the opposite transaction (sell-by-back).

Moreover the Bank accepts collaterals in the form of properties (esp. real estates) related to credit type transactions like mortgage loans, credit lines, banking guarantees.

The table below presents the breakdown of the measures possible to pledge by the main items of the statement of financial position of mBank Group, as at 31 December 2014. Treasury securities are the main component of the Group's liquidity collateral for the purpose of pledge.

31.12.2014

 
Position (PLN 000's) Assets

Collateral received in kind of securities related with
buy sell back transactions

Assets available
for pledge (3+6)

Total Pledged

Eligible for
pledge

Received Reused

Available for
pledge

  1 2 3 4 5 6 7
Debt securities (Note 19 and 23) including: 28 562 995 5 744 095 21 981 048 5 650 950 3 733 189 1 728 649 23 709 697
- NBP bills 4 479 540 - 4 479 540 - - - 4 479 540
- Government bonds 23 204 028 5 744 095 17 459 933 5 650 950 3 733 189 1 728 649 19 188 582
- Mortgage bonds - - - - - - -
- Other 879 427 - 41 575 - - - 41 575

Cash collaterals (due to derivatives transactions)
(Note 18, 22)

581 376 581 376 - - - - -
Loans and advances to customers 74 582 350 3 660 577 - - - - -
Property collateral - - - - - - -
Other assets 14 259 101 - - - - - -
Total 117 985 822 9 986 048 21 981 048 5 650 950 3 733 189 1 728 649 23 709 697
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31.12.2013

 
Position (PLN 000's) Assets

Collateral received in kind of securities related with
buy sell back transactions

Assets available
for pledge (3+6)

Total Pledged

Eligible for
pledge

Received Reused

Available for
pledge

  1 2 3 4 5 6 7
Debt securities (Note 19 and 23) including: 25 803 878 6 018 316 19 306 158 4 536 134 4 024 126 410 885 19 717 043
- NBP bills 6 314 196 21 496 6 292 700       6 292 700
- Government bonds 18 971 895 5 996 820 12 975 075 4 536 134 4 024 126 410 885 13 385 960
- Mortgage bonds - - - - - - -
- Other 517 787 - 38 383 - - - 38 383

Cash collaterals (due to derivatives transactions)
(Note 18, 22)

334 757 334 757 - - - - -
Loans and advances to customers 72 422 479 2 854 890 - - - - -
Property collateral - - - - - - -
Other assets 5 721 647 - - - - - -
Total 104 282 761 9 207 963 19 306 158 4 536 134 4 024 126 410 885 19 717 043
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In 2014, mBank Hipoteczny S.A. secured issued mortgage and public bonds with receivables obtained from loans and advances. As at 31 December 2014, the net carrying value of loans registered in the mortgage and public bonds register, presented above as pledged assets amounted to PLN 3 660 577 thousand (31 December 2013: PLN 2 854 890 thousand).

The value of treasury securities presented as pledged assets, except for collaterals due to sell-buy-back transactions, includes collateral of liabilities due to the loan received from the EIB, the security deposit placed by the client and funds guaranteed under the Bank Guarantee Fund (BFG).