Rabobank not selling US business

no image
No image availableNL Times

Rabobank denies claims that the bank is exploring the possibility to sell a part of their American business.  A spokesperson for the bank said Tuesday that "a sale is not on the cards." She spoke against a report from the Bloomberg press office which earlier communicated on information from sources that the bank is looking to a divestiture in the United States. According to the sources, the bank is looking at the possibility of letting go of California business, where Rabo has around 120 branches that deal with credit supply to the agriculture sector.

According to informed individuals, no decision has yet been made about possible divestment. Rabobank does want to stay active in the United States, sources say. Rabobank N.A., the retail bank in California has, according to a report at the Federal Deposit Insurance Corporation, a worth of €1.3 billion. This pertains to the theoretical worth a bank has at possible liquidation. According to the informed who spoke to Bloomberg, the turnover of a possible sale could be used to strengthen another branch in the US, like the financing branch. Rabobank wants to strengthen its core capital from 12.9 percent last year to 14 percent in 2016. Last year, the bank incurred a fine of almost €775 million in relation to the manipulation of the Libor interest rate.