72 ABN AMRO calculates economic capital using its own internally developed methodology. Assigned risk capital comprises economic capital for the above-mentioned five risk types (currently approximately 80% of assigned risk capital) and an add-on for other risks. The assigned risk capital per risk type is visualised in the top graph on the left. We note that a comparison of ABN AMRO cconomic capital and/or assigned risk capital with that of other financial institutions is hampered by the fact that banks use a wide variety of definitions, model coverage and underlying assumptions. Concepts based on statistical methods, including economic capital and assigned risk capital, by definition have limitations. ABN AMRO is currently developing and implementing its Basel II infrastructure. As a result, our economic capital and assigned risk capital models may change due to improvements in our ability to measure risks. Currently, risk-weighted assets are calculated under the Basel I capital regime. During 2007, both Basel I and Basel II risk-weighted assets will be calculated as a part of an internal parallel run. As of 2008, ABN AMRO aims to implement the advanced approaches for all risk types under Basel II, Pillar 1. Capital allocation Capital within ABN AMRO is recognised and valued as a scarce resource, and is allocated centrally by the Group in line with its business strategy. Capital allocation is embedded in the Strategic Management Process, an all- encompassing management tool that incorporates goal setting, strategy development, resource allocation and performance measurement. The underlying objective of this process is to ensure that capital is allocated in a manner that maximises value creation from a Group perspective within the constraints of ABN AMRO’s overall risk appetite. Assigned risk capital per risk type (2006) Total EUR 24 billion Credit Risk and Country Event Risk: 61% Market Risk (trading book): 1% Interest Rate Risk (banking book): 1% Operational Risk: 10% Business Risk: 7% Capital assigned to BUs for other risks: 20% Assigned risk capital per BU (2006) Total EUR 24 billion BU Netherlands: 19% BU Europe (excluding Antonveneta): 5% Antonveneta: 17% BU North America: 20% BU Latin America: 9% BU Asia: 5% BU Global Clients: 10% BU Private Clients: 3% BU Asset Management: 1% Private Equity: 7% Other: 4% Risk and capital management

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