Hong Kong a
full branch
this year?
Europe is uniting, slowly
but surely
KaDO
band
From Hong Kong, Rabobank
looks after its business in Hong
Kong and China. The office is
located on the 16th floor of a
50-storey office tower in a
building complex on the water
front in central Hong Kong. The
same building houses the Hong
Kong Stock Exchange and nu-
merous banks and company of
fices, altogether employing
12,000 people. Enough for the
economie existence of a small
'Dutch City' in the building.
Rabobank contributes eight
people to this total.
In 1992 the twelve member countries of the EC will open their
ontiers giving rise to an internal European market which will as-
sure its 323 million inhabitants of the free movement of goods,
persons, services and capital. European unification will bring
fresh opportunities and threats to European banks, as also to
other concerns. Rabobank already has offices in Great Britain,
West Germany, France, Beigium and Luxembourg and next on
the list for this year are Italy and Spain. In countries where
Rabobank is not represented the best course is probably to co-
operate with other banks.
Issue 3/April 5, 1989
Hong Kong is one of the major cen-
tres for finance, trading and bank
ing in the world. Because of its
openness and liberal tax regime, many
syndications are arranged from Hong
Kong, funds are managed from Hong Kong
and securities are traded. Besides that,
Hong Kong has a bustling harbour, is a
newly industrialized country with a strong
export and flourishes as the gateway to
China. More than 400 banks are repre-
sented in Hong Kong by a representative
office, a branch or a Deposit Taking Com-
pany (DTC), a financial institution with a
limited licence. Hence there is enough
competition, but most of these institutions
manage to find their own niche in this mar-
ket and earn a living. Every year, there are
around ten newcomers, indicating that still
more banks want to be in Hong Kong.
Hong Kong and China Within the pol-
icy of Rabobank, the Hong Kong Represen
tative Office concentrates on Dutch and
agri-related business. It means that much
time and effort is spent to gain and main-
tain knowledge on Hong Kong and China
for use by our customers. This has led to
arious projects being financed by
Rabobank. Next to this, contacts have
been built up with multinational compa-
nies. It proves to be very powerful if the
same company is served in various parts
of the world by the same bank. Finally, we
have participated in several syndications
although the priority is not in that busi
ness. The above activities make money,
others that do not but were still interesting
in the past three years, were of course the
The EC was formed in 1958 by the
member countries Beigium, West
Germany, France, Italy, Luxembourg
and the Netherlands.
This was a great boost to the Nether
lands economy as it became much easier
for agricultural and industrial products to
find their way to the other member states.
In 1973 the community of six became nine
when it was joined by Denmark, Great
Britain and Ireland, then in 1980 it was
joined by Greece to become ten and in
1986 Spain and Portugal brought the total
to twelve.
weeping tourist without money, the crook
with tens of millions to be transferred or
invested, chasing a debtor of a member
The removal of trade barriers within the
EC and the increased competition which
this encouraged did much to stimulate in-
dustry in the Netherlands and the econo
my flourished, particularly in the 1960s.
This led to a policy of expansion and ratio-
nalisation of production methods, both es-
sential to the competitive position of the
Netherlands in the new industrial climate.
Another result of joining the EC was that
the Netherlands became even more impor
tant as a transit country. The ease of ac
cess from the North Sea makes the Delta
area with Rotterdam, the gateway to Eu-
bank's customer, arranging a mortgage in
the Netherlands, having documents signed
on behalf of member banks, etc.
Later this year, the Hong Kong Rep Of
fice may be upgraded to a full branch. Re-
ports and recommendations to that effect
will be discussed soon by the Board of
Rabobank Nederland.
The branch and factoring activities are two
challenges for the Hong Kong staff in
1989 and thereafter. We are certain that
in the turbulent business climate of Hong
Kong the two new challenges can also be
brought to profit in a foreseeable future.
The key to this will be the people who
work for us. With 1997 and the transfer of
the government of Hong Kong to China
looming, many professionals are leaving
Hong Kong, making an already competitive
personnel market even more competitive.
In spite of that, we have a dedicated and
responsible staff, which may also be be
cause of the challenges we offer.
rope and consequently the hub of econom
ie activity. In addition to the expanding port
and transit with their back-up services the
area also became a key location for inter-
nationally oriented industry. The metal and
petrochemical industries in particular un-
derwent rapid growth and helped to create
a favourable climate for numerous other in
dustries. Since the Second World War, the
Dutch economy has seen almost continu-
ous expansion; in the period 1959-1971
alone, national income doubled in real
terms.
The Netherlands has always been a
strong advocate of free trade. The Benelux
Customs Union, consisting of Beigium, the
Netherlands and Luxembourg, reflects this
thinking and is still the most advanced
form of international economie coopera-
tion. In the EC too, the traditional Dutch
advocacy of free trade is always in evi-
dence. The Netherlands wishes to see the
EC contributing to balanced expansion of
world trade, while at the same time up-
holding the interests of developing coun
tries and eliminating wherever possible re-
maining obstacles to free trade between
member states such as discrepancies in
regulations. It considers that effective ways
of coordinating the economie and financial
policies of member states must be found
with the aim of gradually creating an eco
nomie and monetary union in which powers
will ultimately be transferred to a suprana-
tional European executive. In the view of
the Netherlands government, the first direct
elections to the European Parliament in
1979 were a step in the right direction.