Commission sensitivity of assets, liabilities and off balance sheet items
The Bank manages exposure to the effects of various risks associated with fluctuations in the prevailing levels of market commission rates on its financial position and cash flows. The Board sets limits on the level of mismatch of interest rate re-pricing that may be undertaken, which is monitored daily by the Bank Treasury. The table below summarises the Bank’s exposure to commission rate risks. Included in the table are the Bank’s financial instruments at carrying amounts, categorised by the earlier of contractual re-pricing or maturity dates. The Bank is exposed to commission rate risk as a result of mismatches or gaps in the amounts of assets and liabilities and off balance sheet instruments that mature or re-price in a given period. The Bank manages this risk by matching the re-pricing of assets and liabilities through risk management strategies.
BANQUE SAUDI FRANSI
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2008 and 2007 _______________________________________________________________________________________________
Sensitivity of special commission income
Sensitivity of Equity