Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
The Supervisory Board believes the new cooperative
governance to be appropriate and effective.The new model
enables Rabobank to shape a better bank and a better
cooperative while taking into account the requirements of
regulators and capital markets and staying true to the bank's
cooperative principles.The model contributes to the continuity
of the organisation and to restoring confidence and as such
receives the full support of the Supervisory Board.
On 17 August 2015, the Board approved the legal merger
between Rabobank Nederland and the member banks and the
related amendments to the Articles of Association. With the
agreement of the local Members Councils and the General
Meeting of Rabobank Nederland, the new governance came
into effect as of 1 January 2016. Henceforth, there is now one
Rabobank, with one bank balance and one annual report.
Under the new governance structure, the Supervisory Board will
supervise an Executive Board that has ultimate responsibility for
governing the entire Rabobank.
The Supervisory Board congratulates and thanks the members
of the Governance Committee for their very important
contribution to this historic step.This gratitude also extends to
the local directors and supervisors, local committee leaders, the
Members Councils, the Works Councils, the Executive Board and
all other parties who made such conscientious and engaged
contributions towards a valuable end result.
Strategy
Last year the Supervisory Board and the Executive Board
extensively discussed how Rabobank wants to approach
future technological, social and economic developments
within the legal and regulatory framework while safeguarding
the cooperative foundations and customer-focus on which
the bank was built.The core objectives within the Strategic
Framework 2016-2020 are excellent customer focus, balance
sheet limitation and flexibility and performance improvement.
The Supervisory Board fully endorses the Strategic Framework
2016-2020 approved by the Central Delegates Assembly on
9 December 2015.
The revised strategy, the new governance model, the Culture
Collective cultural programme and a variety of operational
improvements together form the framework for positioning
Rabobank in the coming years as a leading cooperative,
customer focused bank in the Netherlands and in global food
and agri.
The Strategic Framework will be worked out in further detail in
an implementation agenda for the Executive Board, formulated
around the cornerstones of: 'excellent customer focus',
meaningful cooperative, empowered employees and rock-solid
bank. In the coming period, the Supervisory Board will continue
to monitor the implementation and transformation process
arising from the new Strategic Framework.
Executive Board Implementation Agenda and
periodic reports
The Supervisory Board has frequently studied the progress
of several key projects and issues such as activating
customer focus, Banking for Food, optimising the balance
between supervision and customer service, balance sheet
reduction and capital prioritisation, data quality and client
integrity. Furthermore, after a thorough briefing by the Audit
Committee and Risk Committee, the Supervisory Board
considered (periodic) reports on legislation and regulation,
monitoring, compliance, risk and audit.
Financial statements for2014, interim report 2015
and budget for 2016
In accordance with the relevant provisions of the Articles of
Association of Rabobank Nederland, the Supervisory Board
has reviewed the Annual Report and the financial statements
for 2014 of Rabobank Nederland and of Rabobank Group,
and other additional information thereto. The Supervisory
Board discussed these documents with the Executive Board,
the internal auditor and the external auditors, Ernst Young
Accountants LLP (EY).The Supervisory Board took note of
the unqualified external auditor's report issued by EY on
the 2014 financial statements. The subsequent discussions
focused on several special items, loan impairment charges,
the development of costs and economic performance.
The Rabobank report 'In Control', the EY Management Letter (In
Control Statement), the findings in the audit report 'Rabobank
Group in 2014', including the management response, were
also discussed.
In August 2015, the Supervisory Board studied in the detail the
Interim Report Rabobank Group 2015. The focus of attention
was on a number of special and non-recurring items.
On the basis of monthly figures and targeted reports, the
Supervisory Board studied the development of certain
customer sectors, market share, margins, ratios, costs and
staffing. At the request of the Supervisory Board, benchmark
analyses were also periodically carried out relative to relevant
peers at home and abroad. The results of these analyses were
taken into consideration for formulating strategy, assessing
budgetary frameworks and establishing the outlook for
Rabobank for the coming years. In autumn 2015, the budgetary
framework for 2016 was discussed by the Supervisory Board and
approved. The approval came with the remark that budgets and
targets for each entity would be revised in spring 2016 as a first
step towards fulfilling the Strategic Framework 2016-2020.
159 Report of the Supervisory Board
