Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3 The table below gives an age analysis of expired (pastdue) but non-impaired financial assets. Age analysis in millions of euros On 31 December 2016 Loans and advances to banks Loans and advances to customers Loans to government clients Loans to private clients: - overdrafts - mortgages - leases - reverse repurchase transactions and securities borrowing agreements - corporate loans - other Total On 31 December 2015 Loans and advances to banks Loans and advances to customers Loans to government clients Loans to private clients: - overdrafts - mortgages - leases - reverse repurchase transactions and securities borrowing agreements - corporate loans - other Total 30 days 30 to 60 days 61 to 90 days 90 days Total 42 59 477 20 1,644 327 811 220 11 158 48 6 514 190 2,319 144 1,223 4,093 169 36 10 7,157 774 121 2 344 326 4,709 10 58 680 8,955 44 50 41 49 516 38 2,766 407 1,163 245 15 187 84 27 596 219 3,579 87 1,579 1,828 213 37 8 6,395 922 425 563 2,742 45 898 8,640 4.3.6 Forbearance Rabobank has a policy for monitoring its forbearance portfolio every quarter. This portfolio consists of the customers of Rabobank for whom forbearance measures have been putin place.The measures underthat name comprise concessions to debtors facing or about to face difficulties in meeting their financial commitments. A concession refers to either of the following actions: A modification of the previous terms and conditions of a contract the debtor is unable to comply with due to its financial difficulties ('bad debt') in order to allow for sufficient debt serviceability. A modification that would not have been granted had the debtor not been in financial difficulty. A total or partial refinancing of a bad debt contract, which would not have been granted had the debtor not been in financial difficulty. Examples include postponements of repayments and extensions of the term of a facility. The rationale for the focus on this portfolio derives from the concerns of European regulators about the deterioration of the quality of the portfolio; it is feared that forbearance measures might camouflage this deterioration of the portfolio as debtors are able to meet their financial obligations for longer periods as a result of the concessions. The identification of forbearance measures for the corporate portfolio is based on the current Loan Quality Classification framework, with forbearance measures only applying to the classified portfolio. If forbearance measures are applied to a debtor, the debtor falls, by definition, under the supervision of the Special Asset Management department. Lastly, items in the forbearance category must be reported for up to two years after their recovery from 'non-performing'to 'performing'. This period of two years is referred to as 'Forborne under probation'. For the accounting policy regarding derecognition of financial assets please refer to section 2.9 'Securitisations and (de)recognition of financial assets and liabilities'. 4.4 Currency risk in the banking environment Currency risk is the risk that the bank's financial result and/ or economic value will be negatively affected by changes in exchange rates. Rabobank is exposed to the effect of fluctuations in exchange rates on its financial position and cash flows. In the trading environment, currency risk, like other market risks, is managed on the basis ofValue at Risk (VaR) limits set by the Executive Board. In the banking environment, there is a currency risk in the banking books and a translation risk. 197 Notes to the consolidated financial statements

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Jaarverslagen Rabobank | 2016 | | pagina 198