Dutch Banking Code
Background
The financial crisis that began in mid-2007 led to a
profound social debate on the performance of financial
institutions. In the Netherlands, the'Commissie Toekomst
Bankwezen' (Advisory Committee on the Future of Banks)
took the lead in this debate by publishing a report entitled
'Naar herstel van vertrouwen'(Restoring trust) on 1 April
2009. The banking industry held various follow-up talks
on this matter, in which Rabobank actively participated.
These talks led to the publication of the Dutch Banking
Code, which was adopted by the Dutch Banking Association
(NVB) on 9 September 2009 and came into effect on
1 January 2010. The Banking Code is enshrined in law.
It forms part of a set of national, European and international
laws and regulations, case law and codes, parts of which
are still being developed. Banks have to take this entire
framework into account when applying the Banking Code.
Scope of Dutch Banking Code
Local Rabobanks
The Banking Code contains provisions on the structure of a bank's governance, risk
management, audit function and remuneration policy. At the same time, it provides third
parties with a tool they can use to ascertain whether banks have taken the right steps in
response to the financial crisis. The Banking Code is intended to help restore trust in the
financial sector.
The second report of the Banking Code Monitoring Committee was published at the end of
2012. The Committee's principal conclusion was that banks generally act in compliance with
the Code, but that compliance is not yet promoted enough by the banking sector. Rabobank
therefore aims to increase public awareness of the Banking Code in 2013. This section looks at
the context in which the provisions of the Banking Code are applied, and briefly describes
how the provisions have been implemented. Compliance by Rabobank with the Banking
Code is based on the 'comply or explain' principle. Rabobank values transparency and clear
accountability. Further information concerning the particulars of each provision can be found
in a separate appendix to this Annual Report that is available on the corporate website
www.rabobank.com/annualreports.
A policy is in place at Rabobank Group to ensure the group-wide application of the Dutch
Banking Code in all group entities established in the Netherlands, including the local
Rabobanks. This policy covers such aspects as risk management, audits and remuneration.
91 Dutch Banking Code
