RBS 2007 Annual Report Download - page 185

Other collateral given
2007 2006
Group assets charged as security for liabilities £m £m
Loans and advances to banks 753 469
Loans and advances to customers 80,719 44,966
Debt securities 29,709 8,560
Property, plant and equipment 935 1,222
Other 1,765 13
113,881 55,230
2007 2006
Liabilities secured by charges on Group assets £m £m
Deposits by banks 21,693 11,680
Customer accounts 6,670 7,095
Debt securities in issue 65,080 27,607
Other liabilities — 45
93,443 46,427
Of the assets above, £62.0 billion (2006 – £30.1 billion) relate to securitisations (see Note 30). The remaining balances mainly relate to
assets charged as security against deposits from central and federal banks and other public sector bodies.
2007 2006
£m £m
Treasury and other eligible bills 7,090 1,426
Debt securities 100,561 58,874
107,651 60,300
Residual value exposures
The tables below give details of the unguaranteed residual values included in the carrying value of finance lease receivables
(see page 148) and operating lease assets (see page 164).
Year in which residual value will be recovered
After 1 year After 2 years
Within 1 but within but within After 5
year 2 years 5 years years Total
2007 £m £m £m £m £m
Operating leases
Transportation 485 253 1,762 2,505 5,005
Cars and light commercial vehicles 331 467 118 — 916
Other 26 47 64 18 155
Finance leases 23 29 115 288 455
865 796 2,059 2,811 6,531
2006
Operating leases
Transportation 1,054 180 1,339 2,517 5,090
Cars and light commercial vehicles 168 295 329 — 792
Other 13 30 77 24 144
Finance leases 22 22 58 295 397
1,257 527 1,803 2,836 6,423
The Group provides asset finance to its customers through acting as a lessor. It purchases plant, equipment and intellectual property,
renting them to customers under lease arrangements that, depending on their terms, qualify as either operating or finance leases.
RBS Group • Annual Report and Accounts 2007 183
Financial statements
Securities repurchase agreements and lending transactions
The Group enters into securities repurchase agreements and
securities lending transactions under which it receives or
transfers collateral in accordance with normal market
practice. Generally, the agreements require additional
collateral to be provided if the value of the securities fall below
a predetermined level.
Under standard terms for repurchase transactions in the UK
and US markets, the recipient of collateral has an unrestricted
right to sell or repledge it, subject to returning equivalent
securities on settlement of the transaction.
The fair value (and carrying value) of securities transferred
under repurchase transactions included within securities on the
balance sheet were as follows:
All of the above securities could be sold or repledged by the holder. Securities received as collateral under reverse repurchase
agreements amounted to £373.7 billion (2006 – £124.7 billion), of which £337.8 billion (2006 – £107.2 billion) had been resold or
repledged as collateral for the Group’s own transactions.
29 Collateral