RNA has now become a more interestinmodel for international growth Dan Stevens, CFRO for Rabobank N.A.: RNA has an interesting model because its retail network enables the west-coast community bank to actively market for retail deposits and full service banking relationships. In the first two quarters of thisyear, RNA increased its self-funding ratio from 60 percent to 80 percent. "And that is without the money we get from government-supported agencies or deposits that we buy from other banks," comments Stevens. He credits the growth spurt to RNA's community involvement, its sponsorship of the Tour of California, and beefed-up marketing and branding. "We have highlighted Rabobank Group's safety and soundness in a time when a lot of competitors are going through a rough stage." Further inland in the US, Mark Grass, Chief Financial Officer (CFO) at Rabo Agri Finance (RAF), supports a network of relationship managers who are located throughout the primary agricultural producing areas of the US. RAF provides real estate and operating loans directly to farmers, but does not take deposits. lts current funding is 100 percent derived from the Wholesale network in New York. "But that is changing," explains Grass. "Since the mandate to explore self-funding alternatives, we have identified the AgVantage programme offered by the Federal Agricultural Mortgage Corporation (also known as Farmer Mac) as a perfect funding source for the longer term real estate-based financing that we provide to our customers. Approximately 70 percent of AgriFinance's portfolio is real estate-based, and our initial estimates suggest roughly USD 1 billion in loans will qualify for AgVantage funding. Over time, we believe that 40 to 50 percent of our lending can be sourced through Farmer Mac. At this point the remainder would have to be covered through the Wholesale desk, although we continue to actively explore additional self-funding alternatives." There has been A i some studying of whether or not internet banking through International Direct Banking (IDB) would be a viable option, but at this time the appropriate structure is uncertain. Not only are funding possibilities somewhat limited, RAF also feels the squeeze from increased liquidity costs. The costs of funding have risen sharply with the need to match fund Dan Stevens Berry Marttin Mark Grass ISSUE 25 OCTOBE RI WORLD

Rabobank Bronnenarchief

blad 'RI World' (EN) | 2010 | | pagina 21