Regulatory Risk Report

In 2004, the Basel Committee on Banking Supervision issued the Basel II Framework containing international standards for risk-adjusted capital adequacy. The standard was incorporated into German law (to which DVB is subject) on 1 January 2007 through the adoption of the German Solvency Ordinance (Solvabilitätsverordnung – SolvV) of 14 December 2006, which was, in turn, the transposition into German law of the European minimum capital standards prescribed in the Banking Directive (2006/48/EC) and the Capital Adequacy Directive (2006/49/EC), and the corresponding equivalent requirements of the new Basel Capital Accord (Basel II). SolvV has replaced the capital ratio according to the German Banking Act (Grundsatz I), and provides concrete instructions to assure the adequacy of institutions’ own funds in compliance with section 10 of the German Banking Act (Kreditwesengesetz – KWG).

DVB has received supervisory approval for the use of the Advanced Internal Ratings Based Approach, effective 1 January 2008, for the determination of credit risk-related charges against regulatory capital.

With this report, DVB Bank SE, in its capacity of parent company of the DVB Group, complies with the reporting requirements of sections 319 to 337 of the SolvV in conjunction with section 26 a of the KWG. As a member of the DZ BANK Group, DVB is, in fact, exempt from the reporting requirements of section 319 (2) of the SolvV. Nevertheless, the Board of Managing Directors of DVB Bank SE has decided to voluntarily comply with said disclosure requirements. DVB is a specialist bank focused on global transport finance, offering integrated financial and advisory services in its Shipping Finance, Aviation Finance, and Land Transport Finance segments through its network of 13 office locations around the world. Recognising the requirements associated with its focused market presence and its status having adopted the "Advanced Approach", DVB provides enhanced transparency at all times (rather than just during financial crises), maintaining an active and open financial communications policy.