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There are no collaterals held against other financial assets. The Group obtained a property during the year by taking
possession of collateral held as security against a loan. The value of the collateral repossessed during the year was
N9.4bn (2016: Nil). The Group’s policy is to pursue timely realisation of the collateral in an orderly manner. The Group does
not generally use the non-cash collateral for its own operations. Hence, the repossessed collateral has been included in
assets classified as held for sale (Note 31).

Collateral held and other credit enhancements, and their financial effect

The general creditworthiness of a customer tends to be the most relevant indicator of credit quality of a loan extended to
it. However, collateral provides additional consideration in the credit process and the Group generally requests that cor-
porate borrowers provide collateral. The Group may take collateral in the form of a first charge over real estate, floating
charges over all corporate assets and other liens and guarantees. The Bank will sell or repossess a pledged collateral only in
the event of a default and after exploring other means of repayment. In addition to the Group’s focus on creditworthiness,
the Group aligns with its Credit Policy Guide to periodically review the valuations of collaterals held against all loans to cus-
tomers. This is done in line with the approved Framework for valuing various categories of collateral accepted by the Bank.

The fair values of collaterals are based upon last annual valuation undertaken by independent valuers on behalf of the
bank. The valuation technique adopted for properties are based on fair values of similar properties in the neigbourhood.
The fair values of non-property collaterals (such as equities, bond, treasury bills, etc.) are determined with reference to
market quoted prices or market values of similar instruments.

5.1.4 Offsetting financial assets and financial liabilities

As at 31 December 2017
In thousands of Naira
Gross amounts of Gross amounts of Net amounts of
recognised financial recognised financial financial assets
assets liabilities offset in presented in the
The following financial assets are the statement of statement of finan-
subject to offsetting financial position cial position

Financial assets
Loans and advances to banks 68,929,263 815,187 68,114,076
Total 68,929,263 815,187 68,114,076

As at 31 December 2017

Financial liabilities
Interest bearing borrowing 283,106,328 815,187 282,291,141
Total 283,106,328 815,187 282,291,141

Access BAnk Plc 239
Annual Report & Accounts 2017