Dit prospectus is gemaakt voor de uitgifte van dit product en ... - Iex

Rabobank Nederland’s “central bank” activitiesCapital adequacy and liquidityThe cross-guarantee system operates in concert with the regulatory and administrative oversight of the localRabobanks by Rabobank Nederland. Notwithstanding the fact that Rabobank Nederland and the localRabobanks are supervised by the Dutch Central Bank (De Nederlandsche Bank N.V.) on a consolidated basis,based on Article 3:111 of the Financial Supervision Act, Rabobank Nederland has responsibility for ensuringcompliance by the local Rabobanks with the applicable capital adequacy and liquidity regulations. The capitaladequacy regulations are intended to preserve a bank’s ability to withstand loan losses and other business risksthrough reserves and retained earnings. The internal standards actually applied by Rabobank Nederland,however, are more conservative than the regulations promulgated by the law. This policy partly reflects thefact that local Rabobanks, which cannot raise new capital by the issue of shares, can only grow and maintainan appropriate ratio of reserves to total liabilities by making profits. Any local Rabobank whose ratio ofreserves to total liabilities fails to meet internal solvency standards is subject to stricter supervision byRabobank Nederland. In particular, Rabobank Nederland may restrict such local Rabobank’s authority tomake lending decisions within Rabobank Group’s lending limits.The local Rabobanks are permitted to have accounts only with Rabobank Nederland, which is the sole outletfor each local Rabobank’s excess liquidity and acts as treasurer to the local Rabobanks.Supervision on market conductPursuant to Section 2:105 of the Financial Supervision Act, Rabobank Nederland has been designated by theMinister of Finance (Ministerie van Financiën) as an undertaking which is deemed to have a collectivelicence, applying both to itself and to all local Rabobanks. As a consequence of this collective licence, thesupervision by the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten), as far ascompliance with the rules on market conduct pursuant to the Financial Supervision Act is concerned, will bedirected at Rabobank Nederland. In turn, Rabobank Nederland plays a central role in the supervision of theconduct of the local Rabobanks.251