TlB Annual Report 2009 - Triodos Bank

Net exposure
value
2008 2008 2008 2008
Credit risk
mitigation
Fully adjusted
exposure
value
Riskweighted
value
Exposure class
Central governments and central banks
Regional governments and local
329,773 15,637 345,410 —
authorities — 2,480 2,480 723
Public sector entities — 188 188 186
Banks 708,496 53,650 762,146 198,288
Corporates 931,762 -60,650 871,112 732,710
Retail exposures 120,394 -7,670 112,724 85,429
Secured by property 507,411 -2,044 505,367 387,991
Past due items 27,875 -1,591 26,284 36,867
Other items 43,928 — 43,928 43,928
2,669,639 — 2,669,639 1,486,122
Whereof:
Assets 2,348,961 — 2,348,961 1,341,752
Off-balance sheet items 306,924 — 306,924 135,880
Derivatives 13,754 — 13,754 8,490
2,669,639 — 2,669,639 1,486,122
Notes:
The figures of 2008 have been changed based on renewed insights which led to reclassifications from corporates
to secured by property.
The net exposure value is a sum of:
Assets excluding intangible assets, excluding discount of subordinated liabilities (included under prepayments
and accrued income) and after deducting discount of bonds (included under accruals and deferred income);
Off-balance sheet items, consisting of contingent liabilities and irrevocable facilities;
Derivatives, valued at the credit risk equivalent, which is based on the additional costs or the lost revenues of a
substitute transaction in the event that the counterparty does not fulfil its obligations.
Credit risk mitigation relates to received collaterals (guarantees and pledged funds entrusted). As a result, the
credit risk shifts from the exposure class of the direct counterparty to the exposure class of the collateral
provider. This results in the fully adjusted exposure value for each exposure class.
The risk-weighted value is calculated by multiplying the fully adjusted exposure value with the risk weight and
the conversion factor. Basel II guidelines state the risk weights and conversion factors.
Risk weights depend on the exposure class and the credit rating of the direct counterparty or the collateral
provider. The risk weights per exposure class used by Triodos Bank are:
Central governments and central banks: 0%;
Regional governments and local authorities: 0% for Dutch governments, 20% for foreign governments; the
percentage depends on national legislation;
Public sector entities: 100%;
Banks: 0% for exposures secured by pledged funds entrusted of Triodos Bank; 20% or 50% for exposures of or
guaranteed by other banks, depending on the original term to maturity of the exposure;
TRIODOS BANK - ANNUAL REPORT 2009 125