Economic capital by risk category
Economic capital by group entity
at year-end 2013, in
O
The available qualifying capital of EUR 41.7 (42.3) billion that is retained to compensate for
potential losses is well above the level of the total economic capital. The sizeable buffer
underlines the financial solidity of Rabobank Group.
Excellent liquidity position
EDTF recommendation 4 Rabobank Group has a very strong liquidity position, with a buffer of EUR 121 (157) billion.
The decline in the buffer in absolute terms is due to the intentional reduction of professional
funding, especially in the first half of the year, meaning that a lower buffer is appropriate.
The composition of the liquidity buffer is: 32% in deposits held at central banks, mainly the
European Central Bank (ECB) and the Federal Reserve (FED), 32% in government debt and 36%
in other financial assets, mainly securities held internally as collateral for residential mortgages
provided by Rabobank (RMBS).The net stable funding ratio (NSFR) shows the liquidity risk in the
long term. Based on the most recent proposals by the Basel Committee (January 2014), the
NSFR stood at 114% at year-end 2013. On the basis of previous proposals, the NSFR was 102%
(102%).The Basel Committee still has to establish the requirements set for the NSFR in more
detail. The liquidity coverage ratio (LCR) shows the liquidity risk in the short term, and stood at
126% (145%). Rabobank thus amply meets the LCR requirement of 60% as at 1 January 2015
and the future LCR requirement of 100% that will apply from 1 January 2018.
Encumbered assets are subject to specific claims by investors. Encumbered assets for funding
purposes came to 4.4% (4.6%) of total assets, adjusted for the derivatives position.
at year-end 2013, in c.
Credit and transfer risk
Interest rate and
market risk
Operational and
business risk
Other risks
Domestic retail banking
Wholesale banking and
international retail banking
Real estate
Leasing
Other
14 Annual Report 2013 Rabobank Group
