RBS 2010 Annual Report Download - page 366

32 Collateral and securitisations
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
falls 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 debt securities on the balance
sheet were £80.1 billion (2009 - £66.9 billion; 2008 - £80.6 billion). All of
these securities could be sold or repledged by the holder. Securities
received as collateral under reverse repurchase agreements amounted to
£94.3 billion (2009 - £74.0 billion; 2008 - £89.3 billion), of which £93.5
billion (2009 - £73.0 billion; 2008 - £49.0 billion) had been resold or
repledged as collateral for the Group's own transactions.
Securitisations and other asset transfers
Continued recognition
The table belowsets out the asset categories together with the carrying amounts of the assets and associated liabilities for those securitisations (see
page 217) and other asset transfers where substantially all the risks and rewards of the asset have been retained by the Group.
2010 2009 2008
Asset type Assets
£m
Liabilities
£m
Assets
£m
Liabilities
£m
Assets
£m
Liabilities
£m
Residential mortgages 76,212 18,215 69,927 15,937 55,714 20,075
Credit card receivables 3,993 34
2,975 1,592 3,004 3,197
Other loans 30,988 974
36,448 1,010 1,679 1,071
Commercial paper conduits 20,014 17,320 27,366 25,583 49,857 48,684
Finance lease receivables 510 510 597 597 1,077 857
131,717 37,053 137,313 44,719 111,331 73,884
Refer to page 218 for additional analysis on commercial paper conduits.
Assets are significantly greater than liabilities, as all notes issued by funding related own asset securitisation SPEs are purchased by Group companies.
Continuing involvement
At 31 December 2010, securitised assets were £2.3 billion (2009 - £3.1 billion; 2008 - £1.1 billion); retained interest £286.1 million (2009 - £101.9 million;
2008 - £50.6 million); subordinated assets £4.2 million (2009 - £90.7 million; 2008 - £9.0 million); and related liabilities £4.2 million (2009 - £32.7 million;
2008 - £9.0 million).
Other collateral given
Group assets pledged against Group liabilities 2010
£m
2009
£m
2008
£m
Loans and advances to banks 27,271 25,712 43,126
Loans and advances to customers 46,352 38,924 53,894
Debt securities 7,200 8,723 13,191
80,823 73,359 110,211
Liabilities secured by Group assets
Deposits by banks 10,565 12,724 15,429
Customer accounts 3,599 3,319 10,907
Debt securities in issue —1,237 109
Derivatives 93,570 65,225 137,667
107,734 82,505 164,112
RBS Group 2010364
Notes on the accounts continued