Activities of Supervisory Board in 2011
In accordance with its statutory duties and responsibilities, the Supervisory Board supervised
the policies pursued by the Executive Board and the general conduct of affairs at Rabobank
Nederland and its affiliated entities. In addition, it served as a sparring partner to the Executive
Board. Regular topics for discussion and approval were the annual and the interim figures;
operational and financial targets, strategy, corporate social responsibility, and the risks associated
with the business were discussed and approved at least quarterly. Where risk was concerned,
discussions centred on the outcome of the Executive Board's assessment of the design and
effectiveness of the internal risk management and control systems, and any significant changes
in those systems. Other issues that were considered included the effectiveness of the compliance
function in place at Rabobank Group and compliance with laws and regulations, the growing
concern for customer focus, the relationship with the local Rabobanks and ICT, including
logical access control and the issue of data leakage.
The Supervisory Board approved the Risk Appetite Paper and the Risk Charter on the
recommendation of the Audit, Compliance Risk Committee.
For the Rabobank Member Certificates to continue to qualify as core Tier 1 capital after the
implementation of CRD IV, the Supervisory Board approved the conversion of the old Member
Certificates into new Rabobank Member Certificates in 2011. The General Meeting resolved on
16 June 2011 to amend the Articles of Association accordingly.
The Supervisory Board devoted a meeting to the communication strategy, addressed the
risk assessment performed by the Dutch Central Bank and took note of the outcome of the
EBA stress test, the application for a banking licence in India, and the announcement of a
collaboration with PGGM. In addition, the members of the Supervisory Board and the members
of the Executive Board exchanged thoughts about the structure of Rabobank Nederland as a
support organisation and about Rabobank Group's international strategy. The supervisory
directors also educated themselves in 2011 about the impact of earthquakes in New Zealand
and the earthquakes and subsequent tsunami in Japan had on Rabobank employees and
customers.
Priorities of Supervisory Board in 2011
Financial statements 2010, interim report 2010 and budget for 2012
The Supervisory Board discussed at length the Annual Report 2010 of Rabobank Nederland
and Rabobank Group, including the report of the Executive Board, the accompanying
independent auditor's report, the financial statements and the proposed profit appropriation.
The management letter, including the management commentary, was also talked about in
detail in the presence of both the internal auditor and the independent external auditor.
In addition, the Supervisory Board extensively reviewed the interim report 2011 of Rabobank
Group and discussed the budget for 2012, approving it in outline. Furthermore, the Supervisory
Board approved the Annual Plan and the Rabobank Nederland Budget for Supporting Member
Banks 2012.The funding mandate for 2012 was approved as well. In reviewing the financial
statements and the budget, the Supervisory Board considered the capital adequacy and
liquidity requirements announced by the Basel Committee (Basel III), addressing specifically
the importance of client deposits as a source of funding as well as the desirability of the
balanced and varied composition of funding sources. The Audit, Compliance Risk Committee
prepared extensively for the discussions on these issues.
Debt crisis
In 2011the Supervisory Board frequently met with the Executive Board to discuss the
European debt crisis and its impact on Rabobank. The supervisory directors kept close track of
the financial markets. In-depth discussions took place with the Executive Board about the steps
taken and to be taken by Rabobank, and the measures implemented by the different regulators.
The various stress tests that Rabobank performed were debated extensively. The Supervisory
Board established in this process that the core Tier 1 ratio comfortably meets the relevant
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Annual Report 2011 Rabobank Group
