expertise Banking on the developing world Back to Rabobank's roots Ad Geerts Rabobank and the rural cooperative banks will mutually benefit from the relationship. 'An important aspect is the synergy that will be created between these banks and our corporate banking operations in Shanghai and Beijing,' says Kuijpers. 'For instance, through savings deposits the rural cooperative banks have ample access to renminbi funding, which will be used for Rabobank's financing in local currency.' RFID's modus operandi is usually as follows: it buys a strategie stake in a qualifying bank in a developing country, thereby secur- ing representation on the board. RFID provides the institution with management as needed. The consultancy arm, RIAS, supplies technical assistance, using Rabobank staff to transfer knowledge. RIAS has assisted banks in developing countries in this way since 1989; assignments and funding typically came from developmen- tal financial institutions, multilateral institutions and governments. Now, though, the emphasis is shifting toward supporting RFID's partner banks. The historie acquisition in China is only the second Rabobank Development Program investment. The first involved the purchase of a 35% stake in the National Microfinance Bank (NMB) of Tanzania in September 2005. The government recently privatised this bank in order to broaden the reach and scope of financial services in the country. 'It has almost one million customers, but it's financially still small, with a balance sheet of only US$ 600 million,' says Kuijpers. Rabobank has provided a management team, and a technical assistance project is being implemented for the first three years. Key employees are being trained in the Netherlands, and dozens of Rabobank specialists will take their expertise to Tanzania. 'The privatisation, which was considered important because NMB, with 116 branches, is the only bank that reaches rural areas, is already regarded as a success by Tanzania's government, its central bank and NMB staff,' Kuijpers says. RFID aims to create leading rural banks in an initial eight countries - projects in Mozambique, Zambia, Paraguay and Peru are currently being set up. The RDP's activities help Rabobank achieve its goal of sup- plying financial services in rural areas where such services are scarce. It strengthens Rabobank's position and network in economically up-and-coming countries, such as China. And, it occasionally brings new business Rabobank's way. 'Partner banks are mainly retail banks,' says Kuijpers. 'When they come across larger clients, such as international trade clients, their business will be transferred to us.' Banks are selected according to certain criteria. To qualify, an institution must be in a country that is economically, socially and politically stable. It must have a wide national branch network or the potential for one, or, in large countries like China, an extensive regional network. It should serve all market segments in rural areas, including farmers, Small and Medium-sized Enterprises and private individuals. Finally, the bank should have the potential for modernisation. All these factors reflect Rabobank's original values, and the RDP is an opportunity for the bank to continue to pursue them in parts of the world where it can make the biggest difference in people's lives today. 18 The Word Issue 12-October 2006

Rabobank Bronnenarchief

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