Rabobank Australia Limited is working with the Australian Prudential Regulation Authority (APRA) to address its concerns in relation to Rabobank Australia’s funding agreement with its global parent.
Rabobank Australia CEO Peter Knoblanche said Rabobank Australia has a strong capital position and long-standing stable parent funding.
“As noted by APRA, Rabobank Australia is financially sound and has a strong liquidity and funding position,” he said.
“This matter relates to a type of clause contained within the funding agreement with our parent which APRA has recently clarified has implications on the way liquidity coverage ratios are calculated and reported. We are working with APRA to ensure this agreement is amended appropriately,” he said.
Rabobank managing board member, responsible for the bank’s international Rural and Retail Business, Berry Marttin said the Netherlands-based global Rabobank stood fully behind its ongoing funding commitment to its Australian subsidiary and the funding agreement was intended to reflect this complete commitment.
Mr Marttin said Rabobank Australia was a successful growing business and a core part of Rabobank’s growing international agricultural banking operation.
Mr Marttin said both Rabobank globally and the Australian subsidiary were “rock solid financial institutions with extremely strong liquidity positions”.
“Rabobank globally is among the most solid and creditworthy banks in the world, while Rabobank Australia Limited in its own right is a financially strong, stand-alone business, with a proven record of many years of healthy performance and sustained growth,” he said.
Rabobank Australia is a part of the global Rabobank Group, the world’s leading specialist in food and agribusiness banking. Rabobank has 120 years’ experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness. Rabobank is structured as a cooperative and operates in 38 countries, servicing the needs of approximately 8.4 million clients worldwide through a network of more than 1000 offices and branches. Rabobank is one of Australia’s leading agricultural lenders and a significant provider of business and corporate banking and financial services to the food and agribusiness sector.
