Inhoudsopgave Voorwoord Bestuursverslag Figure 11Maturity date calendar. Remaining maturity date calendar, short-term debt securities at year-end 2016, in billions of euros 25 20 Mife 1 week 1 week -1 month 2-3 months 4-6 months 7-12 months 12 months Remaining maturity date calendar, long-term wholesale funding at year-end 2016, in billions of euros 40 35 30 25 20 15 10 5 0 IllllUl NcowO'-iNm^inioio <NrNfMrMrMfN<N<N OOOOOOOOOOO Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3 In 2016, Rabobank raised 14 billion of senior unsecured long-term funding in 11 different currencies. By operating on a global scale, the bank aims to avoid becoming too reliant on a single source of funding. The average maturity ofthe newly raised unsecured long- term funding is approximately 5.6 years (2015: 5 years). Ofthe total wholesale funding more than 45 billion matures after five years or more as of year-end 2016. Rabobank is a frequent and flexible issuer of short-term debt securities and has seen a solid inflow of funds in the past years, reflecting its solid creditworthiness. The maturity ofthe short- term debt has increased in the past twelve months. Per year-end 2016 the average maturity of short-term issued debt was 114 (2015: 90) days. In 2016 Rabobank participated in theTargeted Long-Term Refinancing Operation-ll (TLTRO-II) for a total amount of EUR 2 billion. For the future, Rabobank intends to add covered bonds to the funding mix. Rabobank started the process to register its inaugural covered bonds programme with De Nederlandsche bank (DNB). Additional contractual obligations in case of a rating downgrade In the event of a downgrade to Rabobank's credit rating, the bank could be required to provide additional collateral or be faced with an outflow of liquidity. The table below shows the potential maximum outflow if the rating of Rabobank deteriorates by one, two or three notches. Table 53: Potential maximum outflow of liquidity. Potential maximum outflow of liquidity at 31 December 2016 Funding Derivatives Other Total Rating downgrade: 1 notch 1,325 52 510 1,886 2 notch 91 1,122 2,866 4,079 3 notch 2,045 1,310 499 3,854 Total for 3 notches 3,461 2,484 3,875 9,820 In the table a split has been made between funding, derivatives and other instruments. Funding instruments include fixed-term deposits, bonds, loans and professional funding with rating triggers. Derivative documentation can also contain rating triggers on Rabobank that could potentially result in additional liquidity risk. In some cases, a rating trigger may have been agreed on services provided to clients. For instance, a Letter of Credit or a guarantee on behalf of a client granted by Rabobank may sometimes contain a rating trigger.This means that, under certain circumstances, the beneficiary of this guarantee may request that the guaranteed sum be paid out if the rating of Rabobank drops. In that case, Rabobank has a direct claim on the customer for whom the guarantee was provided.This initial outflow is recognised under 'Other'. Asset encumbrance In certain cases, assets on the bank's balance sheet are encumbered. The EBA considers an asset encumbered if it has been pledged ortied-up and is subject to any form of arrangement to secure, collateralise or credit enhance any transaction from which it cannot be freely withdrawn. As such, pledged assets that are subject to any restrictions in withdrawal, such as assets that require prior approval before withdrawal or replacement by other assets, should be considered encumbered. 362 Rabobank Jaarverslag 2016

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Jaarverslagen Rabobank | 2016 | | pagina 363