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

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Annual Reports Rabobank | 2018 | | pagina 213