Rabobank New Zealand

Rabobank New Zealand Limited is a bank in New Zealand, a subsidiary of Rabobank Nederland. Rabobank focuses on rural banking, business banking and saving services. The New Zealand subsidiary was registered in 1994.[1]

Rabobank New Zealand Limited
TypeSubsidiary, Cooperative
IndustryBanking
Founded1994 (1994)[1]
HeadquartersNew Zealand
Key people
Ben Russell[2]
ProductsRural banking, business banking and saving services
  • NZ$105.49mil - 2014 [3]
  • NZ$81mil - 2013[4]
Total equityNZ$1.1bln - 2013 [4]
Websitewww.rabobank.co.nz, www.rabodirect.co.nz

History

In 1998, Rabobank purchased the finance company Wrightson Farmers Finance Limited from Wrightson, a 160-year-old farming business, for NZ$300mil . The sale destabilised Wrighton, but effectively established Rabobank as a rural lender in New Zealand.[5][4][6][7] From November 2008 until December 2012, Rabobank was the principal sponsor of BikeNZ (since renamed to Cycling New Zealand).[8][9]

Credit rating

Rabobank New Zealand historically had the highest-possible credit rating of AAA from Standard & Poor's. However, after its parent company Rabobank Nederland had its rating downgraded and the deposit guarantee that the parent provided to the New Zealand subsidiary expired, S&P downgraded Rabobank's credit rating to A. [10] Rabobank stated that deposits in Rabobank and RaboDirect made before the expiry of the parental guarantee in 2015 will still be guaranteed as long until they are withdrawn or transferred to another account.[4]

The credit rating of Rabobank New Zealand as of October 2015 is A from Standard & Poor's.[11]

RaboDirect

RaboDirect a division of Rabobank New Zealand specialising in online savings and investments. It runs under the slogan "Your specialist savings bank". RaboDirect offers online savings accounts and access to investment funds.

Cash deposits through RaboDirect are used for lending to the New Zealand rural sector through Rabobank New Zealand.[12][13][1]

RaboDirect, originally known as RaboPlus, was launched in February 2006. The bank originally advertised to customers as "Your significant other bank". By August 2006, six months after its launch, it had gathered over $500 million in deposits.[14]

In July 2010 the bank was rebranded as RaboDirect to bring it in line with other countries where Rabodirect operated such services.[15]

Criticism

In March 2013 a Taranaki dairy farming family were forced off their Ōkato farm after Rabobank refused to negotiate a deal to refinance their mortgage with another bank and repossessed the farm. [16] The family were initially given 21 days to come up with a resolution but 2 weeks earlier than this forced off the farm after the farm threatened to damage farm assets. The repossession resulted in bobby calves that were owned by the son of the family being killed by the receivers as well as some stock slaughtered. A journalist, Melanie Reid, from the TV3 show 3rd Degree was assaulted along with the cameraman when questioning the receivers on the receivership. [17] There were also disputes over part of the farm being gifted to the family by local Maori on the condition the farm stay with the family. The farm was sold in May 2013. [18]

References
  1. "About Rabobank - Cooperative principles". Rabobank. Retrieved 30 October 2015.
  2. "Rabobank New Zealand announces appointment". Scoop.co.nz. Retrieved 30 October 2015.
  3. "Rabobank New Zealand 2014 results". Rabobank New Zealand. 23 March 2015. Retrieved 30 October 2015.
  4. Gareth Vaughan (15 October 2014). "S&P says it's likely to drop Rabobank NZ rating 1 notch to A+ after end of Dutch parent's guarantee". Interest.co.nz. Retrieved 31 October 2015.
  5. "Strategy: Wrightson Resuscitated - Dr Freeth's kiss of life". New Zealand Management. 2002. Retrieved 31 October 2015.
  6. Stringleman, Hugh (2002). "Wrightson restarts farm finance products three years after selloff". Sharechat.co.nz. Retrieved 31 October 2015.
  7. "Rabobank offer could not have better timing". Dominion Post. 2007. Retrieved 31 October 2015.
  8. "RaboPlus announces principal sponsorship of BikeNZ" (Press release). RaboPlus. Scoop. 26 November 2008. Retrieved 31 October 2015.
  9. Plumb, Simon (20 May 2013). "Worries over Bike NZ funding and solvency". Stuff.co.nz. Retrieved 31 October 2015.
  10. Vaughan, Gareth (4 May 2015). "Rabobank NZ credit rating downgraded by S&P after parental guarantee expires, now down 5 notches in 4 years". Interest.co.nz. Retrieved 30 October 2015.
  11. "Credit ratings of banks in New Zealand". Reserve Bank of New Zealand. Retrieved 30 October 2015.
  12. "*ActiveMoney - Issue 4, September 2006". Archived from the original on 3 March 2007. Retrieved 8 November 2007.
  13. Deposits Reinvested Back Into NZ's Agricultural Economy. RaboPlus NZ. 11 March 2009. Retrieved 30 October 2015.
  14. "Smart money going to RaboPlus as deposits top $500 million in record time". Media Release. RaboPlus. Retrieved 30 October 2015.
  15. "RaboDirect's new television advertising campaign on YouTube". Television adverts. RaboDirect. Retrieved 27 October 2010.
  16. http://www.stuff.co.nz/business/money/8616646/Okato-dairy-farm-seized-after-threats-bank
  17. http://www.newshub.co.nz/tvshows/3d/gray-family-and-receivers-clash-over-farm-2013050115#axzz45hUu3VGk
  18. http://www.stuff.co.nz/taranaki-daily-news/8651228/Gray-farm-all-but-sold
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.