The domestic banking sector in the Netherlands is dominated by Rabobank Nederland, the giant farmers' co-operative bank which, since its merger in 1972, has built up a network of over 2,300 local branches.
At year end 1985, Rabobank could boast consolidated assets of Dfl132 billion ($48 billion) and a 40% market share of deposits. That same year, the bank granted 90% of all agricultural loans in the Netherlands, accounting for just 25% of its total credit volume. It was also responsible for almost one-third of loans granted in the mortgage sector and, according to recent estimates, it had the largest market share for small- and medium-sized businesses.
Despite its commercial orientation, Rabobank remains very much a co-operative bank. "Our decision-making process is heavily geared towards local participation," remarked Henk Visser, general manager of international operations. "WE have a decentralized structure, and a strong commitment to our members."
Unlike Credit Agricole or the German Volksbanken, Rabobank operates on a two-tier basis. The 934 member branches are closely monitored by Rabobank Nederland, the central bank for the co-operatives which sets strict guidelines for solvency and liquidity and obliges them to deposit a certain percentage of their funds into reserves.