- 53. Structured Entities About this Report Chairman's Foreword Corporate Management Report Appendices Governance Consolidated Financial Company Financial Statements Statements commercial paper issued by Nieuw Amsterdam for regulatory purposes. 52.4 Carrying Amount of Financial Assets Pledged as Collateral for (Contingent) Liabilities The assets referred to below have been pledged as collateral for (contingent) liabilities (with exception to repo transactions, securities lending and own-asset securitizations) with the objective of providing security for the counterparty. If Rabobank would enter into default the counterparties may use the security to settle the debt. The increase of the pledged loans and advances to customers is caused by a transaction with Achmea where loans are legally transferred to Achmea. These loans are not derecognized by Rabobank as the risks and rewards of the loans have not been transferred. Amounts in millions of euros 2018 2017 Cash and cash equivalents 82 43 Loans and advances to credit institutions 2,536 3,297 Loans and advances to customers 27,499 13,509 Financial assets held for trading 77 92 Financial assets designated at fair value 126 126 Financial assets mandatorily at fair value n/a Available-for-sale financial assets n/a 4,195 Financial assets at fair value through other comprehensive income 4,223 n/a Total assets pledged as collateral 34,543 21,262 53.1 Consolidated Structured Entities A structured entity is an entity which is structured so that voting rights or comparable rights do not constitute the dominant factor in determining who exercises control over the entity. Rabobank uses structured entities in order to securitize mortgages and other loan portfolios as part of its financing activities, liquidity management and in order to reduce credit risk. The loans are actually transferred to the structured entities. Own-asset securitization is handled by Obvion (STORM, GREEN STORM and STRONG) and DLL (LEAP WarehouseTrust No.1, DLL Securitization Trust 2017-A, DLL 2018 - 1 LLC and DLL 2018 - 2 LLC). As well as having provided cash facilities, Rabobank also acts as a swap counterparty for all own-asset securitizations. Rabobank acts as a sponsor in Nieuw Amsterdam Receivables Corporation. Nieuw Amsterdam issues ABCP in various currencies and provides Rabobankcustomersaccessto liquidity through the commercial paper market. Rabobank provides advice and manages the program, markets ABCP, provides cash facilities and/ or credit risk enhancements and other facilities for the underlying transactions and the program itself. Rabobank consolidates the own-asset securitisation vehicles and Nieuw Amsterdam because it is exposed to or entitled to fluctuating income in respect of its involvement in these entities. In addition, Rabobank also has the option to influence the amount of the investor's income by virtue of having control over the entities. 53.2 Non-Consolidated Structured Entities Non-consolidated structured entities refers to all structured entities over which Rabobank has no control. These interests are comprised mainly of debt securities in a securitization vehicle, including RMBS, ABS and CDO and private equity interests. The amount of these debt securities is almost always limited when compared to the vehicle's total assets. Those securitization vehicles are usually refinanced by issued debt securities or credit facilities. The following table shows the nature and risks of Rabobank's interests in non-consolidated structured entities. The size of non- consolidated structured entities generally reflects the carrying amount of the assets and the contingent liabilities. The maximum exposure equals the carrying amount disclosed in the table below. Annual Report 2018 - Consolidated financial Statements 212

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Annual Reports Rabobank | 2018 | | pagina 214