Inhoudsopgave Voorwoord Bestuursverslag Corporate governance
Table 8: Minimum capital buffer.
Minimum captial buffer
Total
CRD IV/CRR CET1 Tier 1 Capital
Minimum pillar 1 4.5% 6.0% 8.0%
Pillar 2 1.75% 1.75% 1.75%
Capital conservation buffer 2016-2019 2.5% 2.5% 2.5%
Systemic Risk buffer 2016-2019 3% 3% 3%
Total required (end state) 2016-2019 11.75% 13.25% 15.25%
Consolidated Financial Statements Company Financial Statements Pillar 3
level than the fully loaded leverage ratio at year-end 2016 as
various adjustments will be gradually applied to the capital
over the coming years in accordance with the regulations.
In line with the endorsed implementing technical standards
with regard to disclosure of the leverage ratio for institutions,
according to Regulation (EU) No 575/2013 of the European
Parliament and of the Council, Rabobank uses the specific EBA-
templates as basis for the presentation of its leverage ratio as
per 31 December 2016.
Forthe summary reconciliation of accounting assets and
leverage ratio exposures we refer to appendix 14.3.
The total required (end state) CET1 capital therefore amounts
to 11.75%, (i.e. a minimum Pillar 1 requirement of 4.5%, a pillar
2 requirement of 1.75%), a capital conservation buffer of 2.5%
and a system buffer of 3%, excluding the pillar 2 guidance.
The required (end state) total capital amounts to 15.25%, (i.e.
a minimum Pillar 1 requirement of 8%, a pillar 2 requirement of
1.75%), a capital conservation buffer of 2.5% and a system buffer
of 3%. In addition to these ratios, there would be a counter
cyclical buffer of up to 2.5% which may be imposed by the
supervisor. Almost all supervisors have set their countercyclical
buffer at 0% as per 1 January 2017.
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 2020:
Minimum CET1 ratio of 14%;
Minimum Total capital ratio of 25%.
Leverage ratio
The leverage ratio is defined asTier 1 capital divided by a non-
risk-based measure of the on- and off balance sheet items.
The information to be disclosed is calculated in accordance with
the amendments made in the CRR calculations as laid down in
Commission Delegated Regulation (EU) 2015/62 of 10 October
2014.The fully loaded leverage ratio on 31 December 2016
stood at 4.6% (2015: 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 2016 stood
at 5.5% (2015: 5.1%).The regulatory minimum level forthe
leverage ratio is 3%.The actual leverage ratio was at a higher
Table 9: Bail-in buffer (in billion).
Bail-in buffer
At 31 December
2016
At 31 December
2015
Retained earnings and other reserves
25.8
25.7
Rabobank Certificates
5.9
5.9
Hybrid capital instruments
8.2
9.1
Subordinated debt
16.9
15.5
Senior Contingent Notes
1.2
1.2
Bail-in buffer
58.0
57.5
Risk-weighted assets
211.2
213.1
Bail-in buffer/risk-weighted assets
27.5%
27.0%
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 2016 from 57.5 billion to 58.0 billion.This corresponds to
approximately 28% (27%) of the risk weighted assets.
324 Rabobank Jaarverslag 2016
