Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
Cost/income ratio:
Engagement:
Equity capital ratio:
Funding:
Hybrid capital:
Operating expenses related to income.
Have a two-way dialogue with key stakeholders, such as our employees, business
partners, clients and society to learn and understand the challenges they face, the
innovations in the market, and developments in sustainability frames of reference.
Engagement contributes to ongoing learning and improvement by enabling
Rabobank to:
identify and create commercial opportunities;
to identify and appraise risks;
have the opportunity to remedy grievances among the Group's stakeholders;
share our knowledge and networks with our clients to motivate them to deal
responsibly with their sustainability issues.
Retained earnings and Rabobank Certificates related to risk-weighted assets.
Funds used by the bank to finance its lending operations.
Capital including components of equity and liabilities, forming part of the bank's
tier 1 capital.
latR (Income at Risk):
This measure indicates, with some degree of reliability, the maximum loss of interest
profit caused by a sharp increase or decline in money market interest rates over the
next 12 months.
Impairment:
Impaired loans:
Interest rate risk:
Reduction in a company's stated capital.
Loans for which a provision has been made.
The risk that the bank's financial performance and/or economic value, based on the
balance sheet structure, is negatively affected by trends in the money market.
LGD (Loss Given Default):
Liquidity risk:
Estimate of economic loss in the event of default on the part of the debtor.
The LGD is expressed as a percentage of the EAD.
The risk that a bank will not be able to fulfil all its payment and repayment obligations
on time, as well as the risk that it will at some time be unable to fund increases in
assets at a reasonable price, if at all.
Loan-to-deposit ratio:
Market risk:
Ratio of lending due to customers.
Risk related to value changes in the trading portfolio due to price changes in the
market which affect factors such as interest rates, shares, credit spreads, currencies
and certain types of goods.
Operational risk:
The probability of loss caused by inadequate or deficient internal processes,
people or systems, or by external events.
404 Rabobank Annual Report 2015
