Securitisations

As part of Rabobank Group’s financing activities and liquidity management, as well as to reduce credit risk, cash flows from certain financial assets are transferred to third parties. Most financial assets subject to these transactions are mortgage and other loan portfolios that are transferred to a special purpose vehicle that is subsequently consolidated. After securitisation, the assets continue to be recognised in Rabobank Group’s statement of financial position, chiefly under ‘Loans to customers’. The securitised assets are measured in accordance with the accounting policies referred to in note 2.16.

The carrying amount of these financial assets is 77,150 (2011: 82,375) and the corresponding liability amounts to 77,724 (2011: 83,088). Approximately 75% (2011: 73%) of transferred assets are securitised internally for liquidity purposes.

Carrying amount of financial assets provided as security for (contingent) liabilities

The assets referred to above (except repurchase transactions and securities lending) were provided to counterparties as security for (contingent) liabilities. If Rabobank remains in default the counterparties may use the security to settle the debt.