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Management report
The management board of Raiffeisen-Landesbank Tirol AG
applies an effective system of internal audits which ensures
that the accounting accurately reflects business circumstances.
The internal control system for auditing the accounting process
is designed to ensure an acceptable degree of certainty
and accuracy in the published annual financial statements,
in conformity with the statutory provisions of the BWG, the
Austrian Commercial Code (Unternehmensgesetzbuch – UGB)
and the CRR. For this purpose, the supervisory board and
management board call on the expertise and professional skills
of, in particular, the finance department. The supervisory board of
Raiffeisen-Landesbank Tirol AG is responsible for monitoring the
effectiveness of the internal audit systems,
while the management board ensures the existence of an
appropriate internal audit system which has been proven effective
for the account-rendering process. Responsibilities for the individual
components and processes in the accounting system are clearly
Safeguarding deposits
Solidarity association of
Raiffeisen-Bankengruppe Tirol
Together with Raiffeisen-Landesbank Tirol AG, the Raiffeisen
banks of Raiffeisen Banking Group Tyrol 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 arrangements at 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 of the 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 76 Tyrolean Raiffeisen banks. Both
contracts serve to safeguard adequate liquidity and the solvency
of the contracting parties. 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 of the 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 of the CRR). Both institute-specific
security systems were approved by the financial supervisory by
way of a notification.
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
specified and assigned to individual departments. The internal
system 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 process of checks
being carried out twice by different people or testing devices, the
verifying 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 exchange of information relevant to the auditing
process within the individual organisational units forms one
cornerstone of the internal audit system. Internal auditing regularly
and independently audits compliance with in-house regulations,
including in the accounting department. The head of internal
auditing reports directly to the management board.
