3.4 Joint and several liability (cross-
guarantee system)
3.5 Basis of consolidation
Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
Possibly the most pressing issue facing society is that of climate
change (SDG 13 Climate Action). We see our contribution
to solving this issue as a top priority. Our market share puts
us in a position to make a real contribution. First of all by
encouraging our customers in the Netherlands to achieve
energy savings. And at the global level we contribute through
funding and by making clear choices.
Finally, a traditional proverb is of particular relevance to us as
a cooperative bank: 'If you want to go fast, go alone. If you
want to go far, go together' (SDG 17 Partnerships for the Goals).
Which is why we always look for partners to achieve maximum
impact.
Under the Dutch Financial Supervision Act (Wet op het
financieel toezicht), various legal entities owned by Rabobank
are jointly and severally liable under an Internal intra-group
mutual keep well arrangement that requires the participating
entities to provide the funds necessary should any participant
not have sufficient funds to settle its debts.
As at 31 December 2016, the participants are:
Coöperatieve Rabobank U.A., Amsterdam
Rabohypotheekbank N.V., Amsterdam
Raiffeisenhypotheekbank N.V., Amsterdam
De Lage Landen International B.V., Eindhoven
De Lage Landen Financiering B.V., Eindhoven
De Lage Landen Trade Finance B.V., Eindhoven
De Lage Landen Financial Services B.V., Eindhoven
On 1 January 2016, the local Rabobanks and Coöperatieve
Centrale Raiffeisen-Boerenleenbank B.A. entered into
a legal merger and the name of Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A. was changed to Coöperatieve
Rabobank U.A.
The IFRS consolidation scope of Rabobank is determined in
accordance with IFRS 10'Consolidated Financial Statements',
IAS 28 'Investments in Associates'and IFRS 11 Joint Arrangements'.
Rabobank controls an entity if Rabobank has power over
the investee, exposure or rights to variable returns from its
involvement with the investee and has the ability to use its
power to affect the amount of the investor's returns. All entities
that are controlled by Rabobank are fully consolidated.
Subsidiaries are consolidated from the date on which
effective control is transferred to Rabobank and are no longer
consolidated from the date that control ceases. In 2016, none
of the subsidiaries experienced any significant restrictions in
the payment of dividends and own funds or the repayment of
loans. The option of subsidiaries to pay dividend to Rabobank
depends on various factors, including local regulatory
requirements, statutory reserves and financial performance.
Investments in associates (investments in which Rabobank has
a significant influence, but which it does not control, generally
holding between 20% and 50% of the voting rights) and joint
ventures are accounted for using the equity method under IFRS.
Regulatory reporting scope
The consolidation scope forthe purpose of calculating
Regulatory Capital is generally the same as the consolidation
scope under IFRS.The entities in the regulatory reporting scope
that are consolidated are listed in appendix 14.6 'Entities in
the scope of CRR (CRD IV)'.The aggregate amount by which
the actual own funds are less than the required minimum in
subsidiaries not included in the consolidation scope is nil.
Direct and indirect holdings of the capital of financial
sector entities that are deducted or risk-weighted
Rabobank risk weights the following entities for a total amount
of 2,084. As per 31 december 2016, no financial sector entities
have been deducted from capital.
Achmea B.V. (29.21%)
Arise B.V. (25%)
Banco Terra (45.24%)
Banco Cooperativo Sicredi (23.98%)
Banque Populaire du Rwanda (14.6%)
Development Finance Company of Uganda Bank (27.54%)
Grupo Finterra (14.78%)
Komatsu Financial France S.A.S. (95%)
Komatsu Financial Germany GmbFI (95%)
Komatsu Financial Italy S.p.A. (97.22%)
LSVP VI Cayman Trust (12.02%)
National Microfmance BankTanzania (34.9%)
Paraguay Banco Regional (38.74%)
Zambia National Commercial Bank (45.59%)
311 3. About Rabobank