approved the Annual Plan and the Rabobank Nederland Budget for Supporting Member
Banks 2013. The funding mandate for 2013 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.
Strategic Framework 2013-2016
Early in 2012, the Supervisory Board organised an extra session with the Executive Board to
discuss the Strategic Framework 2013-2016. During this session, the Supervisory Board invited
the Executive Board to explain, and the Executive Board asked the Supervisory Board to advise
on, what would be the best tactic for Rabobank to use to address, in its own specific way, the
strategic challenges that present themselves as a result of the changes in the financial world
and the more stringent regulatory requirements. Once it had been brought up, this topic
was on the table in every subsequent meeting of the Supervisory Board. Another separate
in-depth session was devoted to the Strategic Framework 2013-2016 the summer of 2012.
The Strategic Framework was adopted by the Central Delegates Assembly in September 2012.
Friesland Bank
Early in 2012, the Supervisory Board approved the merger between Friesland Bank and
Rabobank in the spring of 2012 after having discussed issues such as the financial impact, the
potential risks and the implications of the integration process, including the amalgamation of
the customer base, workforce, branches and operations of Friesland Bank into the network of
local Rabobanks in the Netherlands over a transitional period of about two years.
European debt crisis
In 2012, the Supervisory Board met frequently with the Executive Board to discuss the European
debt crisis and its impact on Rabobank and its customers. The members of the Supervisory
Board kept a close eye on the financial markets. In-depth discussions took place with the
Executive Board about the steps taken and to be taken by Rabobank in this regard. The various
stress tests that Rabobank performed were debated extensively. The Supervisory Board
established in this process that the core tier 1 ratio comfortably met the relevant requirements.
The Supervisory Board and the Executive Board also talked at length about the impact of
measures announced by regulators and the government, and the risks attaching to this
accumulation of rules.
New rating methods used by Standard Poor's and Moody's
The Executive Board informed the Supervisory Board at an early stage that rating agencies
Standard Poor's and Moody's had announced the introduction of new rating systems that
might affect Rabobank's ratings. The Supervisory Board sees Rabobank's stability and strong
creditworthiness reflected in the new ratings.
ICT
In connection with the increasing importance of efficient and effective ICT systems to the
provision of financial services to customers, it was decided in 2011 no longer to discuss ICT-
related issues in the ACRC first, but to table them directly in plenary sessions of the Supervisory
Board. In a number of meetings, the Supervisory Board exchanged thoughts with the Executive
Board about such issues as the stability of the IT infrastructure, several security aspects, the
prevention of cybercrime in general and the cyber-attacks that Rabobank suffered in 2012.
Divestments
In November 2011, agreement was reached with Safra about the sale of Rabobank's equity
interest in Swiss-based bank Sarasin.The Executive Board discussed this transaction
extensively with the Supervisory Board. The sale was completed in 2012. A purchase
agreement with Japanese financial services provider Orix for the sale of Robeco was signed in
February 2013. The Executive Board and the Supervisory Board also talked extensively about
this step.
Investments
The Supervisory Board approved Rabobank's acquisition of nearly all outstanding shares in
Polish-based Bank BGZ in the summer of 2012. After having consulted with the Executive
Board, the Supervisory Board agreed to the acquisition of the remaining shares in Obvion
from Stichting Pensioenfonds ABP, the other shareholder.
101 Report of the Supervisory Board of Rabobank Nederland
