Rabobank
4
Let's not forget
that the main aim
of Basel III is to
bring trust back
into the banking
system 9
Jan Claassen,
Chairman of Rabobank Netherlands
member bank Land van Cuijk
Maasduinen
Jan Claassen
Local member banks sit at the heart of the Rabobank cooperative
organisation and service more than 7 million retail customers
and over 140,000 business customers spread throughout the
Netherlands. How much of an impact will Basel III have on
the local banks' operations? Jan Claassen provides insights
on this topic from a local bank's perspective. "The changes
to the liquidity Standard will undoubtedly affect us, although
it'll be the long-term requirements rather than the short-term
requirements that will be impacted the most. This is primarily
because we can satisfy our short-term funding requirements
through the high-quality funds available via the retail savings
market. For long-term funding, though, we are essentially
reliant on Rabobank Group decisions, which could impact
us. Capital changes, meanwhile, will also reach us by way of
changes to policies at Rabobank Group level. Not only will we
have to think carefully about where we place our capital, we'll
also need to work hard on improving our margins to increase
our earnings." Although little formal preparation is taking
place at member banks in anticipation of the Basel III proposals,
Claassen explains that this is mainly because member banks
have been introducing new standards in their daily practice
following the global financial crisis in 2008 that comply with
Basel III requirements. Claassen: "There has been a higher sense
of urgency concerning margins on financing, and member
banks have focused more on the risks taken and the costs
incurred, for example. However, let's not forget that the main
aim of Basel III is to bring trust back into the banking system
and help banks reconnect with their core business. As a coop
erative bank, in general we never lost those qualities. We've re-
tained all of our earnings over the past century and we remain
committed to, and trusted by, our members and customers.
We're very confident in Rabobank's fundamental business
ideology: from members, for members."
ISSUE 25 OCTOBER 2C
RI WORLD
