About this Report Chairman's Foreword Management Report Appendices Corporate Governance Consolidated Financial Statements Company Financial Statements Term Green Mortgage Hybrid capital latR (Income at Risk) Impact Loan Impaired loans Interest rate risk Mortgage that encourages customers to buy energy efficient new homes by giving them a discount (0.5%) on the interest. Capital including components of equity and liabilities, forming part of the bank's tier 1 capital. 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. 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. 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. Estimate of economic loss in the event of default on the part of the debtor. The LGD is expressed as a LGD (Loss Given Default) percentage of the EAD. The riskthat a bank will not be able to fulfill all its payment and repayment obligations on time, as well as the Liquidity risk riskthat it will at sometime be unable to fund increases in assets at a reasonable price, if at all. Costs consisting of the amounts added to the loan impairment allowance and charged to the profit and loss account. Loan impairment charges represent the balance of addition, release and earnings after write-offs. Loan impairment charges Loan impairment charges are generally expressed in basis points of average lending. Loan-to-deposit ratio Ratio of lending related to due to customers. Relevant topics that may reasonably be considered important for reflecting the organization's economic, environmental and social impacts, or influencing the decisions of stakeholders. Risk related to value changes in the trading portfolio due to price changes in the market which affect factors such as interest rates, shares, credit spreads, currencies and certain types of goods. The probability of loss caused by inadequate or deficient internal processes, people or systems, or by external events. PD (Probability of Default)The likelihood that a counterparty will default within one year. Capital determined based on the regulator's requirements. For Rabobank, this represents the sum of the tier 1 capital, subordinated debts and share of noncontrolling interests less transitional provisions. Risk-based profitability measurement framework which ensures that earnings and risks can be consistently weighted against each other. Materiality Market risk Operational risk Qualifying capital RAROC (Risk Adjusted Return On Capital) Regulatory capital or external capital requirement Return on tier 1 capital The total capital classified by the regulator as risk-bearing capital, consisting of the tier 1 and tier 2 capital. Net profit related to the tier 1 capital as at 31 December of the previous financial year. The assets of a financial institution multiplied by a weighting factor, set by the regulatory authorities, reflecting the relative risk related to these assets. The minimum capital requirement is calculated based on the risk-weighted assets. A company's ability to meet its financial obligations. Agriculture with a focus on sustainability and innovations. Innovations that will ultimately result in structural increases of sustainable food supply. Sustainable develop ment is develop ment which meets the needs of current generations without comprising Sustainable development the ability of future generations to meet their own needs (UN Brundtland Commission Report, 1987). Funds allocated to loans provided to SMEs with sustainability certifications on products, processes or buildings. Customer profile to identify whether a customer is a sustainability leader in its industry or an average or below-average performer. This capital is determined based on the regulator's requirements. For Rabobank, this represents the sum of the common equity tier 1 capital, grandfathered instruments and share of non-controlling interests less transitional provisions and deductions. Tier 1 capital as related to the risk-weighted assets. Risk-weighted assets Solvency Sustainable agriculture Sustainability Bond Sustainability photo Tier 1 capital Tier 1 ratio Annual Report 2018 - Glossary of Terms 266

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Annual Reports Rabobank | 2018 | | pagina 268