2. Introduction
Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
This document presents the consolidated Capital Adequacy
and Risk Management report (hereafter referred to as Pillar 3) of
Rabobank Group ('Rabobank') as at 31 December 2016.
In addition to the changes required under CRD IV, there remain
ongoing regulatory developments. Rabobank keeps monitoring
them closely and assessing their impact.
Rabobank operates under the CRD IV capital framework which
came into force at the start of 2014. CRD IV constitutes the Basel
framework which seeks to align regulatory requirements with
the economic principles of risk management. The CRD IV was
implemented into Dutch law as amendments to the 'Wet op het
financieel toezicht'and further accompanying regulations. Pillar
3 requirements under CRD IV are designed to promote market
discipline through the disclosure of key information about risk
exposures and risk management processes. Rabobank's 2016
year-end disclosures are prepared in accordance with the CRD
IV requirements and associated guidelines of the European
Banking Authority (EBA) technical standards, in force as of
31 December 2016.
The information in Pillar 3 has not been audited by Rabobank's
Group external auditors. However, the Pillar 3 disclosures
are subject to the Rabobank's Group internal controls and
validation mechanisms, to provide assurance over the
information disclosed in this report as well as with regards to
compliance with laws and regulations.
The remainder of this report contains:
Chapter 3: About Rabobank;
Chapter 4: The approach of risk management, the
organisation and the risk management
framework;
Chapter 5: Capital management, regulatory and economic
capital and key capital ratios;
Chapter 6: Credit Risk (including counterparty credit risk)
and equities in the banking book;
Chapter 7: Securitisation in the Rabobank portfolio;
Chapter 8: Operational risk management;
Chapter 9: Market risk and interest rate risk framework;
Chapter 10: Liquidity risk management framework and
measurement;
Chapter 11: Remuneration principles and policy
of Rabobank.
The implementation of CRD IV is subject to transitional
arrangements. By 1 January 2018 all CET1 capital deductions
should be phased in and the non-eligible Tier 1 capital
instruments will be phased out by 1 January 2022. Consequently,
Rabobank's capital position is presented by applying the
transitional arrangements. Rabobank also disclosed the end-point
CRD IV rules (i.e. fully loaded basis) for informational purposes.
304 Rabobank Jaarverslag 2016