Rabobank Groep is the largest Dutch agricultural lender. The company would tap the growing Turkey market by opening as many as four commercial banking branches. This was after the financial institution got regulatory approval last month.
The Dutch bank was established in 1898 as a cooperative lender serving Dutch farmers. It would open its first branch in Instabul, said a Rabobank board member in telephone interview today. He added the number may grow to four more banks in the next three to four years. The number of employees would also grow from around 20 to between 100 and 150 bank workers.
Rabobank had been focusing on food and agricultural industries in fast-growing markets including Turkey and Brazil. The Dutch bank would also trim its other banking operations. Last month, Rabobank got regulatory approval to open a bank in Turkey with a capital of USD300 million. The lender would try to expand in a market with banking equity returning to 16% in the first half of the year.
Rabobank board member Sipko Schat said, "The Turkish banking industry is highly developed and competitive, in our segment in particular. Returns are important but for us the importance is mainly in its growth potential, the strategic location and export potential."
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