Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
Economic capital or internal
capital requirement:
This refers to the minimum capital buffer required in order to offset all unexpected
losses caused by the various risks to which a bank is exposed during a specific time
period (one year), assuming a specific reliability interval.
Engagement:
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.
Ethics Committee:
Rabobank Committee established in 1998 which assesses practical situations that
have an underlying ethical dilemma and weighs them against Rabobank's norms and
values.
Equity capital ratio:
Funding:
Green Bond:
Green Mortgage:
Retained earnings and Rabobank Certificates related to risk-weighted assets.
Funds used by the bank to finance its lending operations.
Fund allocated to the financing of renewable energy projects (solar and wind).
Mortgage that encourages customers to opt for an energy efficient new home by
giving then a discount (0.5%) on the interest.
Hybrid capital:
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.
Impact Loan:
Loan with a significant interest account introduced by the European Investment Bank
(EIB) and Rabobank for sustainability frontrunners in the Netherlands with a positive
social impact.
Impaired loans:
Interest rate risk:
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):
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.
Liquidity risk:
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.
Rabobank Annual Report 2017
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