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
'AdviescommissieToekomst Banken' (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 talks on this matter, in which Rabobank also 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 and 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 set into account when applying the Banking Code.
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 Banking Code, but
that compliance is not yet promoted enough by the banking sector. Over four years after it
was introduced, it was therefore time to revise the Code. This update took account of the
recommendations ofthe Banking Code Monitoring Committee, the report of the Commission
on the Structure of Dutch Banks and the government's vision on the Dutch banking sector.
The principles in the 'old' Code that have already been enshrined in legislation and regulations
are no longer included in the new Code. Rabobank will naturally continue to comply with
these national and international regulations. Rabobank will endeavour in 2014 to raise public
awareness ofthe new Banking Code and to engage in dialogue with society.
This chapter looks at the context in which the provisions ofthe current Banking Code are
applied, and briefly describes how the provisions have been implemented. Compliance by
Rabobank with the provisions ofthe 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. Rabobank will report on its compliance with the new
Banking Code as of 2014.
Dutch Banking Code
