Corporate governance
Over the past years, Rabobank Group has paid a great deal of
attention to its corporate governance. The desire for optimum
implementation of corporate governance within Rabobank Group
naturally implies that it closely follows the global debate on this
subject. As it is, financial institutions such as Rabobank Group have
been familiar for years with many of the latest governance
principles. After all, the financial sector has always been subject to
strict regulation because of its social and economic role.
Strategy and targets
Given its firm roots in Dutch society and its prominence in the inter
national capital markets, Rabobank Group endorses the principles
of the Dutch Corporate Governance Code. However, Rabobank
Group is not directly subject to this code, as its structure is based
on cooperative principles and it is not listed on the stock exchange.
Nevertheless, it will apply the majority of the code's elements.
Cross-guarantee system
Rabobank Group consists of the local Rabobanks, their central
organisation Rabobank Nederland and its subsidiaries and
other affiliated entities.
Through their mutual financial association, various legal
entities within Rabobank Group together make up a single
organisation. An internal liability relationship exists between
these legal entities, as referred to in Section 12 of the Act
on the Supervision of the Credit System 1992 (currently
Rabobank Group endorses the principles of the Dutch corporate
governance code.
Members' influence is embedded in the cooperative structure.
62 Rabobank Group Annual Report 2006
