Risk report

Rentenbank’s Risk Management System (RMS) serves to identify, manage and monitor the risks arising from its business activities. Rentenbank’s risk management is based on regulatory requirements and the specific features of its business model as a promotional bank. The key elements of risk management are:

• the risk strategy, which is derived consistently from the market-oriented business strategy,
• the Risk Appetite Framework and the Risk Appetite Statement,
• the risk culture,
• the ongoing review of the adequacy of capital and liquidity,
• a clear organisational and procedural structure for the RMS within a three-lines-of-defence structure.

Rentenbank is not a CRR institution within the meaning of Section 1 (3d) KWG and is supervised at national level by BaFin and Deutsche Bundesbank. Nevertheless, pursuant to Section 1a (1) KWG, the provisions of the CRR apply to Rentenbank. In addition, Rentenbank does not maintain a trading book within the meaning of Article 4 (1), items 85 and 86 CRR.