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Contents Foreword Management report Corporate governance Consolidated Financial Statements
The table below gives an age analysis of expired (pastdue) but non-impaired financial assets.
Company Financial Statements
Pillar 3
Age analysis
in millions of euros
30 days
30 to 60 days
61 to 90 days
90 days
Total
On 31 December 2016
Loans and advances to banks
54
19
73
Loans and advances to customers
Loans to government clients
42
9
4
4
59
Loans to private clients:
- overdrafts
477
20
11
6
514
- mortgages
1,644
327
158
190
2,319
- leases
811
220
48
144
1,223
- reverse repurchase transactions and securities borrowing agreements -----
- corporate loans
4,093
169
121
326
4,709
- other
36
10
2
10
58
Total
7,157
774
344
680
8,955
On 31 December 2015
Loans and advances to banks
44
6
50
Loans and advances to customers
Loans to government clients
41
5
1
2
49
Loans to private clients:
- overdrafts
516
38
15
27
596
- mortgages
2,766
407
187
219
3,579
- leases
1,163
245
84
87
1,579
- reverse repurchase transactions and securities borrowing agreements -----
- corporate loans
1,828
213
138
563
2,742
- other
37
8
45
Total
6,395
922
425
898
8,640
4.3.6 Forbearance
Rabobank has a policy for monitoring its forbearance portfolio
every quarter. This portfolio consists of the customers of
Rabobank for whom forbearance measures have been put in
place. The measures under that name comprise concessions
to debtors facing or about to face difficulties in meeting their
financial commitments. A concession refers to either of the
following actions:
A modification of the previous terms and conditions of
a contract the debtor is unable to comply with due to its
financial difficulties ('bad debt') in order to allow for sufficient
debt serviceability. A modification that would not have been
granted had the debtor not been in financial difficulty.
A total or partial refinancing of a bad debt contract, which
would not have been granted had the debtor not been in
financial difficulty.
Examples include postponements of repayments and
extensions of the term of a facility. The rationale for the focus on
this portfolio derives from the concerns of European regulators
about the deterioration of the quality of the portfolio; it is feared
that forbearance measures might camouflage this deterioration
of the portfolio as debtors are able to meet their financial
obligations for longer periods as a result of the concessions.
The identification of forbearance measures for the corporate
portfolio is based on the current Loan Quality Classification
framework, with forbearance measures only applying to the
classified portfolio. If forbearance measures are applied to
a debtor, the debtor falls, by definition, under the supervision of
the Special Asset Management department. Lastly, items in the
forbearance category must be reported for up to two years after
their recovery from 'non-performing' to 'performing'. This period
of two years is referred to as 'Forborne under probation'.
For the accounting policy regarding derecognition of
financial assets please refer to section 2.9 'Securitisations
and (de)recognition of financial assets and liabilities'.
4.4 Currency risk in the banking environment
Currency risk is the risk that the bank's financial result and/
or economic value will be negatively affected by changes in
exchange rates.
Rabobank is exposed to the effect of fluctuations in exchange
rates on its financial position and cash flows. In the trading
environment, currency risk, like other market risks, is managed
on the basis of Value at Risk (VaR) limits set by the Executive
Board. In the banking environment, there is a currency risk in
the banking books and a translation risk.
193 Notes to the consolidated financial statements
