52. Transfer of Financial Assets and
Financial Assets Provided as
Collateral
About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
All subsidiaries listed in the table have been consolidated. In
2018, none of the subsidiaries experienced any significant
restrictions in the payment of dividends or the redemption of
loans and repayment of advances. The option of subsidiaries to
pay dividend to Rabobank depends on various factors, including
local regulatory requirements, statutory reserves and financial
performance.
Several structured entities in the "Wholesale banking and
international retail banking business" are not consolidated, even
if Rabobank retains more than half of the voting rights. These
structured entities are not consolidated because the relevant
activities are determined by a third party to the contract which
also determines the variable returns.
accrue to the counterparty. A receivable is recognized at a value
equivalent to the amount paid as collateral.
52.2 Repurchase Transactions and Securities Lending
Agreements
Repurchase transactions and securities lending agreements
concluded by Rabobank are included under "Deposits from
credit institutions" and "Deposits from customers" as of
December 31 totaled:
Amounts in millions of euros 2018 2017
Deposits from credit institutions 91 396
Deposits from customers 13 108
Total repurchase and securities lending 104 504
Rabobank does have control over several entities in the Leasing
segment as part of its vendor leasing operations, even though it
retains less than half of the voting rights because control is not
determined based on such rights, but rather on management
participation.
52.1 Reverse Repurchase Transactions and Securities
Borrowing Agreements
Reverse repurchase transactions and securities borrowing
agreements concluded by Rabobank are included under "Loans
and advances to credit institutions" or "Loans and advances to
customers" and amount to on December 312018:
Amounts in millions of euros
2018
2017
Loans and advances to credit institutions
8,743
17,286
Loans and advances to customers
12,928
12,847
Total reverse repurchase transactions and securities
borrowing agreements
21,671
30,133
Under the terms of the reverse repurchase transactions and
securities borrowing agreements, Rabobank receives collateral
under conditions that enable it to re-pledge or resell the
collateral to third parties. On December 31, 2018, the total fair
value of the securities received under the terms of the
agreements was EUR 18,887 million (2017: EUR 30,398 million). In
accordance with the agreement terms, a portion of the securities
was re-pledged or sold as collateral. These transactions were
effected subject to the normal conditions for standard reverse
repurchase transactions and securities borrowing agreements.
The securities are not recognized in the statement of financial
position because almost all the associated risks and benefits
On December 312018, interest-bearing securities with a carrying
amount (equal to fair value) of EUR 92 million (2017:
EUR 458 million) were provided as collateral for repurchase
agreements. The counterparty retains the right to sell or re-pledge
the securities. These transactions were performed subject to the
normal conditions for standard repurchase transactions and
securities lending agreements. The bank may provide or receive
securities or cash as collateral if the value of the securities
changes. The securities are not de-recognized because almost all
the associated risks and benefits accrue to Rabobank, including
credit and market risks. A liability is recognized at a value
equivalent to the amount received as collateral.
52.3 Securitizations
As part of the financing activities and liquidity management of
Rabobank Group, and in order to reduce credit risk, cash flows
from certain financial assets are transferred to third parties (true
sale transactions). Most of the financial assets subject to these
transactions are mortgages and other loan portfolios that are
transferred to a special purpose vehicle that is subsequently
consolidated. After securitization, the assets continue to be
recognised in the statement of financial position of Rabobank
Group, mainly under "Loans and advances to customers." The
securitized assets are measured in accordance with the
accounting policies referred to in Section 2.15.
The carrying amount of the transferred financial assets related to
own-asset securitization is EUR 80,842 million (2017:
EUR 76,803 million) with the corresponding liability amounting
to EUR 78,880 million (2017: EUR 74,819 million). Approximately
72% (2017:76%) of the transferred assets are securitized internally
for liquidity purposes. The carrying amount of the assets where
Rabobank acts as a sponsor (Nieuw-Amsterdam) is
EUR 4,938 million (2017: EUR 4,252 million) with the
corresponding liability amounting to EUR 4,938 million (2017:
EUR4.252 million). Rabobank retains5%to6%oftheoutstanding
Annual Report 2018 - Consolidated Financial Statements
211