Report of the Supervisory Board
of
Rabobank
2016, a year of transition
In 2016 Rabobank began implementing its Strategic Framework 2016-2020. The strategic targets of
the bank (see Board Report) imply a fundamental transition for Rabobank. It takes strong leadership to
manage such a transition while keeping employees motivated. Fortunately, in 2016 we strengthened
the Executive Board with the appointment of two new members: Bas Brouwers and Petra van Hoeken.
We further reinforced the Supervisory Board with several new members who possess knowledge and
competencies that will help Rabobank face the challenges ahead. This is especially important since the
newly implemented governance structure has widened our supervisory scope. The Supervisory Board
now overlooks how the Executive Board steers the entire bank, including the local Rabobanks.
Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
The Supervisory Board monitors, challenges and advises the
Executive Board on a broad variety of financial, risk, regulatory,
compliance, IT/operations and HR themes. In addition to the
supervisory and advisory roles, the Supervisory Board acts
as employer to Executive Board members and as liaison to
Rabobank's stakeholders and society at large.
This review of the activities of the Supervisory Board in 2016
focuses on the four main themes the Executive Board uses
to manages all aspects of the current transition process:
customer service, performance, engagement and employees.
Furthermore, we reflect on the overall performance of
the Supervisory Board, its committees and its members.
The supervisory and advisory roles of the
Supervisory Board
Customer service
Given our independent role and participation in various
networks outside Rabobank, the Supervisory Board is able to
share stakeholder questions and concerns with the Executive
Board on an ongoing basis. Furthermore, we monitor business
developments in general, issues for client sectors facing
difficulties and customer satisfaction scores. To obtain better
insight into the current and future wishes and needs of our
customers the Supervisory Board held an education session on
the economic and social trends that can affect our customers,
especially our food agri clients. Recently we have started
a debate with the Executive Board and other relevant parties
on 'Mission Customer', which aims at strengthening Rabobank's
customer proposition based on its values and unique selling
points as a cooperative bank.
In 2016, the Supervisory Board was regularly updated on
progress made regarding Customer Due Diligence-/-Know
Your Customer (CDD/KYC) in the Netherlands and abroad.
We followed the deliberations closely and discussed the
outcome of the CDD audits of Rabobank and DNB at the
local Rabobanks and the central Expertise Center. We also
monitored mitigating actions of the Executive Board to
ensure Rabobank's structural compliance with the rules and
regulations regarding CDD.
Another client related topic that required our special attention
in 2016 was SME derivatives. The Supervisory Board organised
a thematic deep-dive meeting and several additional meetings
on SME derivatives. We also discussed ways to be more
proactive in dealing with client-related issues.
Performance
The Strategic Framework 2016-2020 contains several financial
and risk targets. These include strengthening capital and
liquidity buffers, creating a shorter and more flexible balance
sheet, consciously weighing risk and return, and improving
performance.
In 2016 the Supervisory Board regularly assessed the
financial markets, the development of Rabobank's ratings
and key financial indicators, including capital ratios and
funding position. The financial position of Rabobank was
compared to its strategic goals and to the position of peers in
the Netherlands and Europe. The Supervisory Board monitored
whether Rabobank was operating within the limits of the
Balance Sheet Management Mandate 2016. While doing so,
the Supervisory Board also reviewed Rabobank's progress in
reducing its dependency on wholesale funding.
154 Rabobank Annual Report 2016
