Local Rabobanks
Rabobank Group Code of Conduct
We take our place in society, all the while adhering to four core values that are embedded in
our mission and ambition: respect, integrity, professionalism and sustainability. All member
banks of Rabobank Group endorse these principles, which govern the actions of all of our
employees. We address our core values in the Rabobank Group Code of Conduct. Our core
values and the Rabobank Group Code of Conduct have regularly been brought to our
employees'attention over the past few years.
Several practical tools were developed and offered to allow our people to act in accordance
with the Rabobank values and philosophy (Ambition Statement, Rabobank Group Code of
Conduct and specific codes of ethics), the idea being to help them make responsible decisions.
The core values and the Rabobank Group Code of Conduct were already embedded in HR
instruments earlier. Our ongoing focus on the Rabobank Group Code of Conduct and on how to
tackle dilemmas is also reflected in the moral and ethical declaration that was ratified in 2010.
Cross-guarantee system within Rabobank Group
Through their mutual financial association, various legal entities within Rabobank Group make
up a single organisation, including the local Rabobanks, Rabobank Nederland and a number
of group entities. These legal entities have a mutual relationship of liability as referred to in
Section 3:111 of the Dutch Financial Supervision Act. This relationship is formalised in an
internal cross-guarantee system, which stipulates that if a qualifying institution should have a
shortage of funds to meet its obligations towards creditors, the other qualifying institutions are
required to supplement that institution's funds in order to allow it to fulfil these obligations.
The local Rabobanks have a cooperative structure. Their members are locally based clients.
These local Rabobanks, their members and their clients make up Rabobank Group's cooperative
core business. Being at the heart of society, they are committed, nearby and leading in their
service offering. In mid-2010, the General Meeting of Rabobank Nederland decided to replace
the different governance models that were optional for the local Rabobanks (Partnership
Model and Executive Model) by a single new governance model: the Rabo Model. Except for a
few branches, all local Rabobanks have now adopted the Rabo Model. The branches that have
not switched to the new model will amend their Articles of Association in 2012.
Using various bodies (Regional Delegates Assemblies, Central Delegates Assembly, General
Meeting and different committees) as a platform, the local Rabobanks conduct an intensive
dialogue with each other and with Rabobank Nederland about group strategy. The local
Rabobanks and Rabobank Nederland have carefully defined rights and obligations with
respect to each other.
In addition to decisive management and independent supervision, the governance model
also safeguards effective member influence. The members of local Rabobanks have important
powers under the Articles of Association, for instance. An active and open dialogue with
customers and members via the Member Council and several panels helps to stay attuned
to the members' needs and keep a connection with the local area.
Management Team
Every local Rabobank has a multi-person Management Team made up of banking professionals,
who collectively conduct the branch's management. The Management Team is appointed by the
local Supervisory Committee, subject to the approval of Rabobank Nederland. The Management
Team operates under the supervision of the local Supervisory Committee. The Management
Team has a balanced composition based on complementarity in order to guarantee
effectiveness of management. One of the Management Team's key responsibilities is to achieve
member commitment and member influence.
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Annual Report 2011 Rabobank Group
