Response of Rabobank to follow-up by the AFM on interest rate derivatives
Rabobank has taken note of the follow-up action advised by the AFM to the Minister of Finance with respect to the interest rate derivatives issue. Rabobank welcomes this approach, as it brings a widely supported solution to this issue closer. It is of the utmost importance to our customers that the reassessment process is completed as soon as possible so that any errors by the bank can be corrected.
Rabobank supports the aim of a uniform compensation framework, as this will ensure that all customers are compensated equally and unequivocally, and that all the circumstances relevant to each customer will be taken into account. Rabobank expects the appointment of independent experts to help ensure that there is sufficient support for the proposed solution and that the solution will be explainable to the various stakeholders in the market. The bank urges that the solution should be formulated so that it applies to both Kifid and the courts and does not negatively affect the competitive relationships between the banks concerned. Rabobank also urges that the compensation framework should be completed as quickly as possible, so that customers are not left in a position of uncertainty as to whether their reassessment and any solution offered will be adequate. Rabobank also considers it important that the solution contributes to the restoration of confidence in the financial sector.
Continuation of the reassessment
Rabobank has continued to carry out the reassessment process in good faith and with the customer’s interest in mind since 2014. Shortcomings caused by the bank have been and will continue to be resolved in consultation with the customer. In its reassessment process, the bank has always followed the principle that customers should not suffer financial loss due to shortcomings of the bank. This of course will continue to be the case. The principle is that a variable interest loan with an interest rate derivative should not be more expensive than a business loan at a fixed interest rate, unless the customer was advised that this construction would be more expensive in advance. In short, Rabobank will continue to cooperate in resolving and completing the reassessment of interest rate derivatives in the interests of our customers.