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