Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
Figure 10: Unsecured long-term
bonds by currency.
Unsecured long-term bonds
by currency at year-end 2016
Euro
55%
US dollar
15%
Japanese yen
7%
Australian dollar
7%
Pound sterling
6%
Other
10%
Of the HQLA liquidity buffer 73% (2015: 62%) consists of deposits at central banks,
mainly held at the DNB, the Federal Reserve Bank of New York, the Swiss National
Bank and the Bank of England. The most liquid category of the buffer (Level 1
assets) constitutes approximately 99% of the HQLA buffer (and 72% of the total
buffer). The liquidity buffer reported contains unencumbered assets only and is
managed by the Treasury department. In addition to the HQLA buffer, a significant
amount of eligible, retained RMBS notes, secured by residential mortgages issued by
Rabobank, are held as a buffer for liquidity purposes. Furthermore, Rabobank holds
a portfolio of securities obtained by short term secured financing transactions, mostly
equity (25 billion) that can be liquidated. This portfolio is not included in Table 51:
Liquidity buffer.
Funding strategy
edtf 21 The current funding strategy strives for diversification of the funding in
products, tenor, markets and currencies. As part of the strategic framework
2020, Rabobank targets to reduce its wholesale funding in the coming years. In 2016,
wholesale funding decreased from EUR 203 billion to EUR 191 billion. Table 52 shows
the various funding sources. The domestic retail banking business is to a large extent
funded by deposits from retail customers. In 2016, funds entrusted by customers of the
domestic retail banking business increased considerably, mainly due to an increase in
current accounts and short term deposits from small businesses and corporates.
Funds entrusted by customers of the domestic non-retail banking business decreased,
mostly due to a decrease in deposits form financial customers. Funds entrusted from
private persons received internationally decreased slightly. This, and a decrease in
assets, contributed to a reduction in the dependency on wholesale funding.
edtf 20 Table 52: Funding mix.
Access to funding
Adjusted for
cash pooling
As published
in billions of euros
at year-end
2016
at year-end
2015
at year-end
2015
Funds entrusted
347.5
337.1
345.4
Domestic retail banking business
223.3
212.4
215.2
- Private individuals
131.1
130.3
130.3
- Other customers
92.2
82.1
84.9
Domestic non-retail banking
52.7
50.8
56.2
International
71.5
73.9
73.9
- Private individuals
28.9
31.5
31.5
- Other customers
42.7
42.4
42.4
Interbank funding
21.6
18.5
18.5
Repos
0.6
1.1
1.1
Wholesale funding (including TLTRO)
190.9
203.1
203.1
Short-term debt securities
45.8
53.1
53.1
- Of which CD/CP
42.0
48.0
48.0
- Of which ABCP
3.8
5.1
5.1
Long-term wholesale funding
145.1
150.0
150.0
- Of which Medium Term Notes
109.2
119.4
119.4
- Of which RMBS and other ABS
17.1
15.1
15.1
- Of which TLTRO
2.0
0.0
0.0
- Of which subordinated debt securities
16.9
15.5
15.5
357 10. Liquidity risk