Note 10

Securities Borrowing, Securities Lending, Repurchase and Reverse Repurchase Agreements

The Group enters into collateralized reverse repurchase and repurchase agreements and securities borrowing and securities lending transactions that may result in credit exposure in the event that the counterparty to the transaction is unable to fulfill its contractual obligations. The Group controls credit risk associated with these activities by monitoring counterparty credit exposure and collateral values on a daily basis and requiring additional collateral to be deposited with or returned to the Group when deemed necessary.

Balance sheet assets
CHF million	Cash collateral on securities borrowed 31.12.07	Reverse repurchase agreements 31.12.07	Cash collateral on securities borrowed 31.12.06	Reverse repurchase agreements 31.12.06
By counterparty
Banks	48,480	221,575	53,538	209,606
Customers	158,583	155,353	298,052	196,228
Total	207,063	376,928	351,590	405,834


Balance sheet liabilities
CHF million	Cash collateral on securities lent 31.12.07	Repurchase agreements 31.12.07	Cash collateral on securities lent 31.12.06	Repurchase agreements 31.12.06
By counterparty
Banks	29,512	139,156	44,118	274,910
Customers	2,109	166,731	18,970	270,570
Total	31,621	305,887	63,088	545,480