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

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Annual Reports Rabobank | 2002 | | pagina 16