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The management board of Raiffeisen-Landesbank Tirol AG applies
an effective system of internal audits which ensures that the ac-
counting accurately reflects business circumstances. The internal
system for auditing the accounting process is designed to ensure an
acceptable degree of certainty and accuracy in the published annu-
al financial statements, in conformity with the statutory provisions of
the BWG and the Austrian Commercial Code (
Unternehmensgesetz-
buch
– UGB). For this purpose, the supervisory board and manage-
ment board can call on the expertise and professional skills of the fi-
nance department. The supervisory board of Raiffeisen-Landesbank
Tirol AG is responsible for monitoring the effectiveness of the inter-
nal audit systems, while the management board ensures the exist-
ence of an appropriate internal audit system of proven effectiveness
for the account-rendering process. Responsibilities for the individual
components and processes in the accounting system are clearly
specified and assigned to individual departments. The internal sys-
Safeguarding deposits
Solidarity association of
Raiffeisen-Bankengruppe Tirol
Together with Raiffeisen-Landesbank Tirol AG, the Raiffeisen banks
of Raiffeisen-Bankengruppe Tirol have set up a solidarity association
that takes suitable action to ensure that association members who
get into economic difficulties receive the help they need.
Raiffeisen deposit guarantee association
This association of Raiffeisen banks, Raiffeisen regional banks,
Raiffeisen Zentralbank Österreich AG and Raiffeisen Bank
International AG reciprocally guarantees all customer deposits and
also the securities issued by members, irrespective of the amounts
involved. The deposit guarantee association has a two-tier
structure, with the first tier being at the state level and the second at
the federal level. The deposit guarantee association thus offers
customers guarantees which go well beyond those required by law.
Deposit protection institutions of
Raiffeisen Banking Group Austria
Via Raiffeisen-Einlagensicherung Tirol eGen, the member banks
of the Raiffeisen-Bankengruppe Tirol are joint members of the
Austrian Raiffeisen-Einlagensicherung eGen. Pursuant to Sections
93, 93a and 93b BWG, this deposit protection cooperative
represents the joint liability entity for the entire Raiffeisen
Banking Group.
For deposit protection purposes, the Raiffeisen Banking Group
Austria has put in place an early warning system which performs
continuous analysis and observations based on a comprehensive
revenue- and risk-reporting system operated by all member banks.
Institutional protection schemes
Pursuant to Article 49 paragraph 3 and Article 113 paragraph 7 of
the EU Capital Requirements Regulation (CRR), at the federal
level Raiffeisen-Landesbank Tirol AG has entered into a contract
with Raiffeisen Zentralbank (RZB), the other Raiffeisen regional
banks and other banks in the Raiffeisen Banking Group for the
establishment of an institutional protection scheme. A contract
with identical contents has also been concluded between
Raiffeisen-Landesbank Tirol AG and the 78 Tyrolean Raiffeisen
banks. The purpose of both of these contracts is to ensure that the
parties to the institutional protection scheme maintain sufficient
liquidity and solvency. The liability arrangements in these contracts
mean that the banks party to them do not have to deduct from their
own funds the holdings of their own funds instruments of the other
parties to the institutional protection scheme (Article 49 paragraph
3 CRR). In addition, the banks may exclude their exposures
towards the other parties to the institutional protection scheme
when calculating their risk-weighted exposure amounts (Article
113 paragraph 7 CRR). Both institutional protection schemes have
been provisionally approved by the Financial Market Authority via
Rules of Procedure pursuant to Section 103q paragraph 3 of the
Austrian Banking Act (
Bankwesengesetz
– BWG). A final ruling on
the scheme is expected during 2014.
Research and development report
Given the nature of the sector’s activities, there are no relevant research and development activities to report.
Report on the key features of the internal audit
and risk management system in relation to the
accounting process
tem for auditing the account-rendering process is implemented and
documented in standing instructions. The internal audit system is an
integral component of the technical and organisational processes,
with specified standards such as the ‘four-eye principle’, the verify-
ing of data quality and plausibility checks, as well as linking risk and
compliance and ensuring that adequate controls are implemented
and correctly executed in relation to specific risks. For instance, the
separation of sensitive activities is backed up by restrictions on the
granting of IT access authorisation.
The regular exchanging of information relevant to the auditing pro-
cess within the individual organisational units forms one cornerstone
of the internal audit system. Internal auditing regularly and inde-
pendently audits compliance with in-house regulations, including
in the accounting department. The head of internal auditing reports
directly to the management board.
Management report