Rabobank Group's origins are in the local loan cooperatives that were established in the Netherlands over a century ago by enterprising people with almost no access to external financing after Friedrich Wilhelm Raiffeisen's example in Germany. These cooperative banks collected the savings from the rural population and used them to fill the need for loans. At first, they operated separately, as Raiffeisenbank and Boerenleenbank, and after their merger in 1972 together as Rabobank. The resulting local Rabobanks have a long tradition, especially in the agricultural sector en in small and medium-sized enterprises. In all those years, its cooperative structure and strong local ties have been its main characteristics.
Although idealistic motives drove the establishment of the first cooperative banks, realism characterised their way of working. This appears from the important business principles of the first cooperative banks: unlimited liability of its members; unsalaried management; adding profits to reserves for further growth; a limited local operating area and membership of a cooperative central bank while retaining local independence. The business elements behind the idealistic framework have been key to the successful development of the agricultural loan banks.
Collaboration is the thread in Rabobank's cooperative history: people working together, banks joining forces and specialised business units combining their expertise. Specifically, the cooperative structure means that Rabobank Group considers serving its clients as its first and main task. It achieves this by:
- providing those financial services considered best and most appropriate by our clients;
- ensuring continuity in the services provided with a view to the long-term interests of the client;
- showing commitment to our clients and their environment, so that we can contribute to achieving their ambitions.