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     »Interest rate risk table 2019.



Model 1: Non-trading portfolio return rates - Swiss francs



Impact on the economic value of property rights

the findings
Balances with the Central Bank of Iraq with a return of 1
Due to banks
Treasury bills
Bonds and other financial instruments
Regular loans and credit facilities 2, 3
Regular loans secured by residential properties - with variable interest rate 3
Fixed loans secured by residential properties - fixed interest rate 3
Non-performing loans
Other assets (interest sensitive) 4
Total assets
Interest rate derivatives contracts
Total assets and other interest-sensitive items (1)
Total non-interest bearing assets and held for trading
Total assets



Liabilities
Demand deposits and current accounts
Savings deposits
Time deposits and notification
Savings Certificates
Due to banks
Issued debt securities
long term loans
Other interest rate sensitive obligations
Total liabilities
Interest rate derivatives contracts
Total Interest-Sensitive Liabilities (2)





Net current gap (1) - (2)

Interest rates according to the current yield curve
Discount rate
 VaR according to the current situation
Scenario # 1
Assuming a shock rate hike of 100 basis points
The rates of return after the shock of a rise in interest rates by 100 basis points
Discount factor
 VaR according to scenario 1
Scenario # 2
Assuming a shock of a 100 basis point reduction in interest rates
The rates of return after the shock rate drop by 100 basis points
Discount factor
 VaR according to scenario 2
Scenario # 3
Assuming short-term interest rate cuts of 150 basis points and long-term interest rate rise of 100 basis points
The rates of return after the shock of short-term interest rate drop by 150 basis points and long-term interest rate rise of 100 basis points
Discount factor
 VaR according to scenario 3
 Scenario 4
Assuming short-term interest rate rises of 150 basis points and long-term interest rate cuts of 100 basis points
Interest rates after the shock of a short-term interest rate hike by 150 basis points and a long-term interest rate drop of 100 basis points
Discount factor

Scenario 4
Assuming short-term interest rate rises of 150 basis points and long-term interest rate cuts of 100 basis points
Interest rates after the shock of a short-term interest rate hike by 150 basis points and a long-term interest rate drop of 100 basis points
Discount factor
 VaR according to scenario 4
 Scenario # 5
Assuming a short-term interest rate rise of just 150 basis points
  Interest rates after the shock of short-term interest rate hike by only 150 basis points
Discount factor
 VaR according to scenario 5
 Scenario # 6
Assuming a short-term interest rate shock of just 100 basis points
   Interest rates after the shock of short-term interest rate drop by only 100 basis points
Discount factor
 VaR according to scenario 6


The effect on net return on a year-on-year basis

 Net current gap (1) - (2)
  Default Interest Rate Change (Basis)
   Actual time period of the current gap
Impact on Net Return (YoY)
Total impact on net return





1. The cash reserves of the Central Bank of Iraq (including the mandatory reserve) are not included in the balance sheet, and the reserve balances in foreign currencies and other interest bearing balances are included in the time period according to the remaining period until maturity / repricing.
2. Includes discounted commercial paper and no secured loans are included in residential properties.
3. It is determined if there are options for expedited payment and the assumptions used in this regard
4. Investment in investment funds for which the Bank has no details




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