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Encyclopedia > Rabobank
Rabobank Groep N.V.
Image:Rabologo.gif
Type Private/Cooperative
Founded 1972
Location Utrecht, the Netherlands
Key people drs. Hubertus Heemskerk, CEO
drs. Diederik Johannes Maximilianus Govert baron van Slingelandt
drs. Johan Christoffel ten Cate
ir. Petrus Johannes Adrianus van Schijndel
dr. Pieter Willem Moerland
Prof.dr.ir. Albertus Bruggink, CFO
Industry Banking
Products Banking
Insurance
Lease
Real Estate
Revenue € 10.05 billion (2004)
Employees 45,000 (2005)
Website www.rabobank.com

Rabobank is a Dutch cooperative banking institution with offices all over the world, although primarily in the Netherlands. Image File history File links Rabologo. ... A private company is a company that is independently owned. ... A cooperative (also co-operative or co-op) is an association of persons who join together to carry on an economic activity of mutual benefit. ... 1972 (MCMLXXII) was a leap year starting on Saturday (the link is to a full 1972 calendar). ... Utrecht ( (help· info)) is a municipality and the capital city of the Dutch province of Utrecht. ... For other uses, see Bank (disambiguation). ... For other uses, see Bank (disambiguation). ... Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of potential financial loss. ... This article or section should include material from Tenancy agreement A lease is a contract conveying from one person (the lessor) to another person (the lessee) the right to use and control some article of property for a specified period of time (the term), without conveying ownership, in exchange for... Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ... Revenue is a US business term for the amount of money that a company can receive from its activities, mostly from sales of products and/or services to customers. ... Employment is a contract between two parties, one being the employer and the other being the employee. ... The front page of the English Wikipedia Website. ... A bank is an institution that provides financial service, particularly taking deposits and extending credit. ...

Contents


History

Rooted in agriculture, Rabobank is set up as a federation of local credit unions, which offer services to the local markets. The central organisation is the daughter organisation of the local branches, rather than the parent organisation, as is the case with most banks. A credit union is a not-for-profit co-operative financial institution that is owned and controlled by its members, through the election of a volunteer Board of Directors elected from the membership itself. ...


The bank is rooted in the ideas of Friedrich Wilhelm Raiffeisen, the founder of the co-operative movement of credit unions who in 1864 created the first farmers' bank in Germany. Being a countryside mayor he was confronted with the abject poverty of the farmers and their families. He tried to alleviate this need through a variety of charitable activities. He soon realised, however, that self-reliance had more potential in the long run than charitable aid. He therefore converted his charitable foundations into a farmers' bank in 1864. In doing so he created the Darlehnskassen-Verein, it collected the savings of the countryside dwellers and provided the enterprising but needy farmers with loans. Friedrich Wilhelm Raiffeisen (May 3, 1818, Hamm - May 11, 1888, Heddesdorf, currently known as Neuwied, Germany) was a German cooperative leader. ... 1864 (MDCCCLXIV) was a leap year starting on Friday (see link for calendar) of the Gregorian calendar or a leap year starting on Sunday of the 12-day-slower Julian calendar. ...


This model found a lot of interest in The Netherlands at the end of the 19th century. One of the first of Raiffeisen's followers was father Gerlacus van den Elsen who stood at the basis of a number of local farmers'banks in the south of The Netherlands. The model caught on being championed by the clergy and the countryside elites. The mission of the farmers' lending banks was an idealistic one but they always operated using strict business principles. The cooperative bank model assured a tight bond between invested capital and the community. The Netherlands (Dutch: Nederland) is the European part of the Kingdom of the Netherlands (Dutch: Koninkrijk der Nederlanden). ...


The bank's traditional headquarters are Utrecht and Eindhoven. In 1898 two cooperative bank conglomerates were formed: Utrecht ( (help· info)) is a municipality and the capital city of the Dutch province of Utrecht. ... Eindhoven is a municipality and a city located in the province of Noord-Brabant in the south of the Netherlands, originally at the confluence of the Dommel and Gender brooks. ...

  • Coöperatieve Centrale Raiffeisen-Bank in Utrecht
  • Coöperatieve Centrale Boerenleenbank in Eindhoven

The first was formed as a cooperation of 6 local banks and the latter as a cooperation of 22 local banks. These two existed side by side for three quarters of a century despite their obvious similarities. The reasons for this owed in part to legal disagreements. The most important difference, however, was cultural. The Eindhoven based Boerenleenbank had a decidedly catholic signature while the Raiffeisen-Bank had a protestant background. In the past The Netherlands underwent a process of pillarization or verzuiling, which in practice meant that members of different religious congregations and political movements essentially lived side by side each other without contact between the two. The religious backgrounds found their way to the organisational structure as well; the Eindhoven organisation stressed a highly centralised structure while the Utrecht organisation promoted local autonomy. Protestantism is a general grouping of denominations within Christianity. ... The Netherlands (Dutch: Nederland) is the European part of the Kingdom of the Netherlands (Dutch: Koninkrijk der Nederlanden). ... Pillarization is a term used to describe the way their dutch and belgians dealt with the multicultural societies. ... Pillarisation is a term used to describe the way the Dutch and Belgians used to deal with their multicultural societies. ...


By 1940 the two organisations cooperated with each other, be it on a limited scale. Three major developments caused a further tightening of the bonds between the two:

  • Increasing number of offices - leading to increased local competition
  • A gradual fading of the confessional differences between the two
  • An increasing demand for capital in the Dutch industry, which in turn led to higher concentration in the banking business

In 1972 the two organisation merged. The name Rabobank is a portmanteau of Raiffeisen-Boerenleenbank. The organisation chose Amsterdam to be its statutory headquarter due to the historical neutrality in relation to the founding organisations. As of 1980 the central organisation is referred to as Rabobank Nederland. It has been suggested that blend (linguistics) be merged into this article or section. ... Amsterdam Location Flag Country Netherlands Province North Holland Population 742,951(1 January 2005) Coordinates Website www. ...


Development

Right from the start the cooperative banks prospered. They managed to perform the key tasks of a banking organisation i.e. bringing excess capital and capital shortages together. These moneylenders stood close to the farmers and were better in judging the creditworthiness of individual farmers than the city banks. This allowed the banks to offer lower interest rates. The local banks were self-governed by members of the cooperation. They adhered to the principle of non-remunerated management and elected the board and the commissioners from among themselves. Only the cashier received a small salary. This has of course changed by now, but even as recently as in late 1950's the local bank office was nothing more than the cashier's living room, he generally performed his administrative duties besides another regular job. Much later, in the 60's the most local banks moved into new and modern offices that reflected their new-found professionalism. The position cashier was replaced by a local bank director. Since 1998 the local bank director is an appointed professional banker and he presides over a board of directors which is chosen from among the members.


Local presence and local autonomy were always important but this hasn't stopped a wave of concentration of the local banks. The major rationale behind this was the need to attain economies of scale in the fields of payments, transaction, processing, staff and of course capital. Increasing customer demand for standardized and widely available products also played a significant part in this development. Currently the motto is:

As large as is necessary, as small as possible.

this of course applies to the size of the local bank offices.


Traditionally the bank served mostly farmers and small businesses. Since the introduction of consumer salary accounts in the 1960s the number of retail clients grew exponentially. This has led to Rabobank being a prominent player in the field of savings accounts, checking accounts and mortgages in The Netherlands.


Rabobank is one of the most well-organised banks in the world and has been awarded the Triple A (AAA+) status, making it the only non-publicly traded bank in the world with such a status [1].


Rabobank Group

Branch of Rabobank in Amsterdam
Branch of Rabobank in Amsterdam

The Rabobank Group consists of a network of local banks, Rabobank Nederland and several daughter organisations. Formally the local Rabobanks are the mother organisation of Rabobank Nederland, their central organisation. The local banks are facilitated by Rabobank Nederland to serve their customers and not the other way around as is often the case with traditional banking organisations. Employees of the group do not routinely speak of a headquarters but prefer to speak of Rabobank Nederland, which is their daughter organisation. Image File history File links Download high resolution version (1024x768, 134 KB) Summary me - 26/11/2005 - Rabobank - Amsterdam Licensing File links The following pages link to this file: Rabobank ... Image File history File links Download high resolution version (1024x768, 134 KB) Summary me - 26/11/2005 - Rabobank - Amsterdam Licensing File links The following pages link to this file: Rabobank ... Amsterdam Location Flag Country Netherlands Province North Holland Population 742,951(1 January 2005) Coordinates Website www. ...


The central organisation does occasionally overrule the autonomy of the local bank organisations. In accordance with Dutch regulations in the field of credit and financial services Rabobank Nederland oversees that the local banks maintain a required level of prudency and professionalism while selling financial products. This has grown to be especially important in view of recent developments and international standards such as Sarbanes-Oxley Act, Basel II and IFRS. This leads to an interesting and rather unusual phenomenon within international business: the mother companies and the much larger daughter are essentially forced to coexist together in order to function properly. This has led to a very ambivalent relationship between the two over the years. Before the signing ceremony of the Sarbanes-Oxley Act, President George W. Bush meets with Senator Paul Sarbanes, Secretary of Labor Elaine Chao and other dignitaries in the Blue Room at the White House July 30, 2002. ... Basel II, also called The New Accord (correct full name is the International Convergence of Capital Measurement and Capital Standards - A Revised Framework) is the second Basel Accord and represents recommendations by bank supervisors and central bankers from the 13 countries making up the Basel Committee on Banking Supervision to... International Financial Reporting Standards (IFRS), often known by the older name of International Accounting Standards (IAS) are a set of accounting standards. ...


At the time of the merger there were five management instruments within Rabobank Nederland:

  1. Algemene Vergadering - general assembly. The boards of all local banks within the cooperation were represented here.
  2. De Centrale Kringvergadering - advisoryboard manned by representatives of clusters of local banks.
  3. De Hoofddirectie - general management. Theoretically they were an autonomous management organ, but in practice, they had to pay 'serious consideration' to what the 4th organ; Raad van Beheer; thought about the course of action for the organisation.
  4. Raad van Beheer - management council. An independent advisory council whose chairman also attended the meetings of De Hoofddirectie.
  5. Raad van Toezicht - supervisory board.

In 2002 this rather cumbersome structure was simplified. The Raad van Beheer was disbanded. De Hoofddirectie received an integral authority over the banking business. It was also renamed to Raad van Bestuur or Board of Directors. They have an added task compared to a traditional board i.e. they are expected to look out for the specific interests of the members (local banks and their certificate holders). The supervisory board was renamed to Board of Commissioners and now held an independent supervisory role. The chairman of this board also presides over the Centrale Kringvergadering. The latter is the most distinguishing organ as compared to other financial institutions in Holland and abroad. It has been suggested that Board of Trustees be merged into this article or section. ...


Market Position

The Rabobank is traditionally a farmers' bank. It is not surprising to learn that they still hold an 85%-90% marketshare in the agrarian sector in The Netherlands. Throughout the years the company also started targeting other sectors of Small and Medium Sized companies. By mid 1970s the marketshare in this sector reached some 30% and currently amounts to approximately 40%. In 1987 an important milestone was reached; the total outstanding loans in sectors other than agriculture exceeded those in the agricultural sector for the first time. By 2005 the agricultural credits amounted to some 8% of total outstanding credit.


Rabobank also holds some 40% of the total outstanding sums on Dutch savings accounts and they account for approximately 20% of all private consumer mortgages in The Netherlands.


The Rabobank Group currently consists of the following divisions:

  • Rabobank Nederland - the facilitary and staff organisation that serves the local banks. It currently performs the following core activities:
    • Market (staff)support for the domestic retail banking business
    • Groupfunctions i.e. ICT, Legal and other facilitary departments
    • Wholesalebanking and international retail banking
  • Local Banks - Approx. 260 independent and cooperative local banks in The Netherlands
  • Rabo Vastgoed - Project developer, real estate
  • Robeco - Asset management
  • Interpolis - Insurance and pensions (401k)
  • De Lage Landen - Vendor finance, leasing and trade finance
  • Schretlen & Co - Asset management, private banking sector
  • Obvion - Mortgage intermediary
  • Alex - online stocktrading
  • FGH Bank - Real estate bank
  • ACCBank - Agricultural Credit Corporation, Ireland
  • VIB Corp - California based financial services corporation

Asset management is the method that a company uses to track fixed assets, for example factory equipment, desks and chairs, computers, even buildings. ... Private banking is a term which covers both of the services which banks give to individuals usually with liquid wealth of above 1 million dollars, and also the division of that entity which does checking, savings, and loans for that clientele. ... A mortgage is a method of using property as security for the payment of a debt. ... Alex is a short form of the given name Alexander. In particular, it may refer to— Alessandro dos Santos, a Brazilian-born Japanese soccer player. ... ACCBank plc is a commercial bank in Ireland that focuses on agriculture, business and personal banking. ... ACCBank plc is a commercial bank in Ireland that focuses on agriculture, business and personal banking. ... Official language(s) English Capital Sacramento Largest city Los Angeles Area  - Total   - Width   - Length    - % water  - Latitude  - Longitude Ranked 3rd 158,302 sq mi  410,000 km² 250 miles  400 km 770 miles  1,240 km 4. ...

External link

  • Rabobank website

  Results from FactBites:
 
Rabobank - Wikipedia, the free encyclopedia (1478 words)
Rabobank is a Dutch cooperative banking institution with offices all over the world, although primarily in the Netherlands.
The organisation chose Amsterdam to be its statutory headquarter due to the historical neutrality in relation to the founding organisations.
Rabobank is one of the most well-organised banks in the world and has been awarded the Triple A (AAA+) status, making it the only non-publicly traded bank in the world with such a status [1].
Rabobank Australia | Sponsorships | National 2005 (1767 words)
Rabobank is the world's leading food and agribusiness bank and also maintains a commitment to add value across the local industry by investing globally in the gathering and sharing of food and agribusiness knowledge.
Rabobank is proud to sponsor the 2005 Australian Dairy Conference to be held in Shepparton, Victoria on 21-23 February 2005.
Rabobank is proud to sponsor the 2005 Australian National Committee on Irrigation and Drainage Conference (ANCID 2005) to be held in Mildura, Victoria on 23-26 October 2005.
  More results at FactBites »

 
 

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