Risk report

The Bank’s Risk Management System (RMS) serves the purpose of identifying, managing, and monitoring the risks arising from the Bank’s business activities. The Bank’s RMS is designed to fulfil the regulatory requirements and reflect the specific circumstances of its business model as a promotional bank. The main elements of the Risk Management System are:

• The risk strategy, consistently derived from the overall business strategy,
• The Risk Appetite Framework and the Risk Appetite Statement,
• The risk culture,
• Ongoing assessments to confirm the adequacy of the Bank’s capital and liquidity position,
• Clear structural and procedural organisation of the RMS within a three-lines-of-defence structure.
  
  

Rentenbank is not a CRR institution within the meaning of Section 1 (3d) of the German Banking Act (Kreditwesengesetz, KWG). It is subject to the national jurisdiction of the German regulators, the Federal Financial Services Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and the Bundesbank. Rentenbank is nonetheless subject to the Capital Requirements Regulation (CRR) pursuant to Section 1a (1) KWG. Furthermore, Rentenbank does not keep a trading book according to Article 4 paragraph 1 nos. 85 and 86 CRR.