Notes 26-30

29 Collateral

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 fall 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 securities on the balance sheet were as follows:

2007
£m		 2006
£m
Treasury and other eligible bills 7,090 1,426
Debt securities 100,561 58,874
107,651 60,300

All of the above securities could be sold or repledged by the holder. Securities received as collateral under reverse repurchase agreements amounted to £373.7 billion (2006 – £124.7 billion), of which £337.8 billion (2006 – £107.2 billion) had been resold or repledged as collateral for the Group's own transactions.

 

Other collateral given

Group assets charged as security for liabilities 2007
£m		 2006
£m
Loans and advances to banks 753 469
Loans and advances to customers 80,719 44,966
Debt securities 29,709 8,560
Property, plant and equipment 935 1,222
Other 1,765 13
113,881 55,230
     
Liabilities secured by charges on Group assets
 2007
£m		 2006
£m
Deposits by banks 21,693 11,680
Customer accounts 6,670 7,095
Debt securities in issue 65,080 27,607
Other liabilities – 45
93,443 46,427

Of the assets above, £62.0 billion (2006 – £30.1 billion) relate to securitisations (see Note 30). The remaining balances mainly relate to assets charged as security against deposits from central and federal banks and other public sector bodies.

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