Inhoudsopgave Bestuursverslag Corporate governance
Our current (transitional based) capital ratios and targets
are higher than the minimum capital requirements. It is our
ambition to maintain a strong capital position. Rabobank has
the following capital ambition as per the end of 20161:
Minimum CET1 ratio of 14%;
Minimum Total Tier 1 ratio of 17.5%;
Minimum Total capital ratio of 20% (later revised to mid-
twenties).
The leverage ratio is the Tier 1 capital divided by balance sheet
positions and liabilities not appearing in the balance sheet
and is calculated on the basis of the definitions in CRD IV.
The fully loaded leverage ratio on 31 December 2015 stood
at 3.9%.The fully loaded leverage ratio is the leverage ratio
if the provisions of the new regulations are fully applied.
The actual leverage ratio on 31 December 2015 stood at 5.1%
(2014:4.9%). The regulatory minimum level for the leverage
ratio is 3%. The actual leverage ratio was at a higher level than
the fully loaded leverage ratio at year-end 2015 because various
adjustments will be applied to the capital gradually over the
coming years in accordance with the regulations.
1 CRR (CRDIV) transitional (not fully loaded).
Jaarrekening Rabobank Groep Jaarrekening Rabobank
Bail-in buffer
Due to regulation it is possible to shift losses onto the creditors
of a bank if the bank in question gets into financial difficulties.
This process is known as a bail-in of creditors. Rabobank wishes
to mitigate this risk as far as possible by holding a large buffer
of equity and subordinated debt that will be called upon at
first instance.This so-called bail-in buffer consists of retained
earnings, other reserves, Rabobank Certificates, hybrid and
subordinated debt instruments and other debt instruments (the
so-called Senior Contingent Notes). Only after using the buffer,
non-subordinated creditors whose claims are not covered by
collateral will have to contribute.The bail-in buffer increased
in 2015 from 51.5 billion to 57.5 billion.This corresponds
to approximately 27% (24%) of the risk weighted assets.
The increase in this buffer is mainly due to the issuance ofTier 1
and subordinated Tier 2 paper in 2015.
Table 10: Bail-in buffer (in billion)
Bail-in buffer
At 31 December
2015
At 31 December
2014
Retained earnings and other reserves
25.7
24.9
Rabobank Certificates
5.9
5.9
Hybrid capital instruments
9.1
7.6
Subordinated debt
15.5
11.7
Senior Contingent Notes
1.2
1.2
Bail-in buffer
57.5
51.3
Risk-weighted assets
213.1
211.9
Bail-in buffer/risk-weighted assets
27.0%
24.2%
335 5. Capital management
