Dit prospectus is gemaakt voor de uitgifte van dit product en ... - Iex

Credit riskRabobank Group aims to offer continuity in its services. It therefore pursues a prudent credit policy. Oncegranted, loans are carefully managed so there is a continuous monitoring of credit risk. Of Rabobank Group’scredit loan portfolio to the private sector, 47 per cent. in the first half year of 2009 consisted of loans to privateindividuals, mainly residential mortgages, which tend to have a very low risk profile in relative terms. Theremaining 53 per cent. consisted of a highly diversified portfolio of loans to business clients in theNetherlands and internationally.With respect to the management of Rabobank Group’s exposure to credit risk, Rabobank Nederland’s CreditRisk Management department and Group Risk Management department play a key role. Credit applicationsbeyond certain limits are subject to a thorough credit analysis by credit officers of Credit Risk Management.Group Risk Management monitors Rabobank Group’s credit portfolio and develops new methods forquantifying credit risks.Risk profiling is also undertaken at the portfolio level using internal risk classifications for portfoliomodelling. Internal credit ratings are assigned to borrowers by allocating all outstanding loans into variousrisk categories on a regular basis.The following table shows the impaired loans (i.e. the amount of loans for which an allowance has been taken)per business unit as a percentage of private sector loan portfolio:Impaired loans/private sector loan portfolio per business unitYear ended 31 December2008 2007 2006Domestic retail banking.......................................................... 1.05% 0.79% 1.18%Wholesale and international retail banking............................. 3.48% 1.53% 1.93%Leasing ................................................................................... 1.95% 1.91% 1.82%Rabobank Group..................................................................... 1.65% 0.97% 1.34%At 30 June 2009, impaired loans corresponded with 2.0 per cent. of the private sector loan portfolio.Bad and doubtful debtRabobank Group’s credit portfolio is routinely monitored for doubtful and bad debts, which results in reviewof the credit quality and consequently, if needed, adjustment of the credit rating and taking an allowance.Within Rabobank Group, a formal analysis of specifically identified larger non-performing loans takes placeevery quarter and is reported in the form of loan strategy reports, which include evaluation of the risksassociated with each loan, the current financial condition of the borrower, the economic environment in whichthe borrower operates, the value of collateral and the strategy for the coming period to protect the interests ofRabobank Group.The table below sets forth Rabobank Group’s bad debt costs for the six months ended 30 June 2009 and thethree years ended 31 December 2008, 2007 and 2006, per business unit as a percentage of private sectorlending:289