Rabobank Nederland

Case Management Control – Rabobank Nederland

Roger Barr’s performance as it is related to the North Texas Cotton Cooperative (NTCC).

Roger Barr is part of the New York credit Committee as an account officer. His main tasks are to review all loan proposals and make decisions and recommendations on proposals up to $1 million. Up to $5 million he needs approval of the New York credit Committee. Loans over $5 million also need approval of the credit Committee of Rabobank Nederland, based in Utrecht. Barr also is the vice president and account manager of Rabobank.

For the account managers a set of goals will be agreed on for loans, deposits, and other income fees. Rabobank only hires experienced account managers because they need little guidance and that will avoid administrative burden and formal communication. Besides, they have a certain routine from previous jobs, which would be expensive to change. Account managers are allowed extensive autonomy to identify potential clients and a loan prospect.

The risk of the clients’ financial situation will only be analyzed by examining their financial statements and market prospects. After the loans are given, several parties will review them regularly.

Roger Barr knew the North Texas Cotton Cooperative (NTCC) and found it a potential customer for Rabobank. He felt that NTCC was generally well managed. He visited the company to gather more information, which would help him making a loan offer to NTCC. NTCC was highly leveraged. Because they had 2 bad years he felt that they would be interested in a term loan. Roger Barr completed a credit application of $20 million for NTCC. Roger noticed there were some risks but he thought it would be a good deal for Rabobank. This already illustrates the bank’s control over account managers and their role, since the analysis of the loan offered to NTCC was Roger Barr’s autonomous decision.

Eventually Roger discussed the loan proposal with the New York credit Committee...