On 14 December 2023, the Dutch Authority for the Financial Markets (AFM) announced that it would impose an administrative fine of EUR 12 million on Rabobank for failing to sufficiently comply with the rules on responsible lending. Rabobank has continuously cooperated with AFM's investigation. Rabobank is studying the decision and is considering whether to lodge an objection.
Rabobank believes it is important to responsibly provide credit. The bank is also keen to offer tailor-made solutions where possible, to enable customers with specific financing needs to responsibly buy a home. This is sometimes necessary. For example, in case of an important life change, such as the termination of a relationship.
AFM based its decision on a sample of 42 specific tailor-made mortgage cases, in which Rabobank was unable to sufficiently demonstrate that in 8 of these cases it had acted in accordance with the set standard. Rabobank takes this seriously. However, these types of customer cases are a very small part of the bank's total mortgage portfolio and therefore not a representation of the entire portfolio. The bank disagrees with AFM's conclusion that the standards have been structurally infringed and therefore considers the amount of the fine to be disproportionate. The amount of the fine has been partly provisioned for in the 2022 financial statements.
Stefaan Decraene, Chairman of Rabobank's Managing Board: 'The AFM decision concerns matters from the past. In recent years, in close consultation with AFM, our acceptance policy and underwriting process have been continuously tightened and clarified in order to continue to responsibly provide credit. Careful customer treatment and responsible lending will continue to be our priority in the future. We will continue to help our customers with their issues, because that's what we, the cooperative Rabobank, were founded for.'
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