The supervisory role
1) Enhancement of Rabobank Nederland's supervisory
duties
2) Budget 2003
3) Strategy of Rabobank International
14 Rabobank Group Annual Report 2002
During the past year, the Supervisory Board focused on the perform
ance of its supervisory duties as defined in the articles of associa-
tion.These concern the supervision of the Executive Board's policy
and of the general state of affairs at Rabobank Nederland and its
affiliated entities. Moreover, contacts were maintained in this con
nection with other entities within Rabobank Nederland, such as the
Central Delegates assembly and the Works Council.Out of the
range of issues dealt with by the Supervisory Board, three special
themes that have been the subject of extensive discussions are
described here.
Compliance with internal and external regulations by all the mem
ber banks is essential. In this respect, primary responsibility rests
with the management and the supervisory board of each member
bank. However, Rabobank Nederland also plays an important part.
The Executive Board and the Supervisory Board have found that a
number of elements of this supervisory role of Rabobank Nederland
could be improved. Accordingly, organisational measures have been
taken within Rabobank Nederland that should result in faster identi
fication of flaws and more adequate intervention at local banks. In
addition, Rabobank Nederland has proposed new framework poli
cies for risk management aimed at preventing problems in this area
at member banks. Part of this policy is a certification approach,
which means that banks that meet certain quality requirements
have greater independence in their lending authority.
In compliance with the articles of association, the Supervisory Board
discussed the budget for 2003. It concluded that the budget frame
works for the coming year have been set very tightly, but that the
long-term cost levels too, need strict monitoring.This applies to
both Rabobank Nederland and the local Rabobanks collectively.
Rabobank International's more vigorous strategy is another part of
the Strategic Framework. Besides operating in the international
Food and Agri-market and other selected wholesale markets,
Rabobank International is increasing its retail operations abroad,
which are aimed at rural areas and the agricultural market.The
Supervisory Board is of the opinion that Rabobank International's
strategy is based on careful consideration of the activities to be
undertaken and provides a solid basis for sound long-term perfor
mance of this business entity.
Finally, the Supervisory Board wishes to thank the members of the
Executive Board and all employees of Rabobank Group for their
contribution in the year under review.
Utrecht, 6 March 2003
The Supervisory Board
