Friesland Bank

Friesland Bank was a Dutch regional retail bank whose roots lay in the cooperative-finance tradition of the northern Netherlands. It was founded in 1913 as the Coöperatieve Zuivelbank, or Cooperative Dairy Bank, to serve the economic needs of the Friesland region. The institution was affiliated with the Raiffeisenbank network, reflecting the cooperative banking structures that were important to Dutch agriculture and regional commerce during the early twentieth century. The bank’s institutional history was shaped by changes in the Dutch cooperative banking sector. When Raiffeisenbank merged with Boerenleenbank to create Rabobank, the Coöperatieve Zuivelbank became independent again rather than remaining part of the newly combined organization. In 1970, it adopted the name Friesland Bank. The new name emphasized its regional identity and distinguished the institution from the larger national cooperative banking group. For much of its history, Friesland Bank concentrated on Friesland. During the 1990s, it broadened its branch presence into other northern provinces, including Groningen, Drenthe, Overijssel, and North Holland. This expansion positioned the bank as a regional institution serving customers beyond its original home province while retaining a specifically northern Dutch identity. Its business was generally described as retail banking, although the available reference material does not provide a detailed product catalogue or a complete account of its customer segments. The bank encountered severe financial difficulty in 2011. It reported a loss of €350 million, attributed in part to an additional write-down on its holding in Van Lanschot and to loan losses. Planned sales relating to the Van Lanschot interest were not realized. The resulting deterioration in capital strength caused the bank’s solvency ratios to fall below applicable standards. The reported BIS ratio declined to 6.1%, compared with an 8% standard, while its Tier 1 ratio fell to 4.2% after more than halving. These problems placed the future of the independent regional bank in doubt. In April 2012, Friesland Bank announced that it would become a subsidiary of Rabobank. The announcement followed the failure of a proposed merger with NIBC after De Nederlandsche Bank blocked that plan. The Rabobank transaction ended Friesland Bank’s period as an independent regional bank, bringing an institution with roughly a century of history into the Rabobank group. The change also marked the conclusion of Friesland Bank’s long-standing role as an autonomous banking brand in the northern Netherlands. The legal and regulatory wind-down continued after the Rabobank transaction. Friesland Bank N.V.’s banking licence was revoked with effect from 15 December 2014. In connection with that revocation, the company changed its name to Friesland Zekerheden Maatschappij N.V. The name change reflected the end of its existence as a licensed bank and the transition away from the Friesland Bank banking identity. Accordingly, Friesland Bank is best understood as a defunct Dutch regional bank rather than as a currently operating independent financial-services brand.

Friesland Bank began in 1913 as the Coöperatieve Zuivelbank, a cooperative dairy bank established in Friesland. Its creation reflected the importance of agricultural and dairy activity in the region and the wider role of cooperative finance in the Netherlands. The institution was affiliated with Raiffeisenbank, one of the cooperative banking organizations that served local communities and businesses. The Dutch cooperative banking landscape changed when Raiffeisenbank merged with Boerenleenbank to form Rabobank. The Coöperatieve Zuivelbank did not remain within that combined organization and became independent again. This gave it a distinct institutional path from Rabobank despite the historical relationship between the organizations. In 1970, the bank adopted the name Friesland Bank, making its regional identity more explicit. Initially, its activities were concentrated in Friesland. During the 1990s, it expanded beyond the province and opened branches in other parts of the northern Netherlands, including Groningen, Drenthe, Overijssel, and North Holland. The expansion transformed it from a primarily Frisian institution into a broader northern regional bank, while its identity and historical base remained closely associated with Friesland. The bank’s financial position deteriorated substantially by 2011. It recorded a loss of €350 million, with the reference material attributing part of the loss to an additional write-down on its interest in Van Lanschot and to loan losses. The intended sales involving the Van Lanschot interest did not take place. As a result, Friesland Bank’s capital ratios fell below established standards: its BIS ratio was reported at 6.1%, compared with an 8% standard, and its Tier 1 ratio fell to 4.2% after more than halving. These difficulties led to a search for a structural solution. A proposed merger with NIBC was blocked by De Nederlandsche Bank. On 2 April 2012, Friesland Bank announced instead that it would become a subsidiary of Rabobank. This ended the bank’s independence and effectively brought the century-old regional institution into the group from which its predecessor had separated during the earlier formation of Rabobank. The Friesland Bank legal entity subsequently ceased to operate as a licensed bank. Its banking licence was revoked with effect from 15 December 2014. In connection with the revocation, Friesland Bank N.V. changed its name to Friesland Zekerheden Maatschappij N.V. The change signaled the end of Friesland Bank as an active banking brand and completed the transition from an independent regional retail bank to a post-banking corporate entity.

• 2014

  Banking licence revoked

  [1]Friesland Banken.wikipedia.org

  The banking licence of Friesland Bank N.V. is revoked effective 15 December, and the company changes its name to Friesland Zekerheden Maatschappij N.V.

• 2012

  Rabobank subsidiary plan announced

  [1]Friesland Banken.wikipedia.org

  Friesland Bank announces that it will become a Rabobank subsidiary after a proposed NIBC merger is blocked by De Nederlandsche Bank.

• 2011

  Severe financial deterioration

  [1]Friesland Banken.wikipedia.org

  The bank reports a €350 million loss, while write-downs, loan losses, and weak capital ratios place its independent future under pressure.

• 1990

  Expansion into the northern Netherlands

  [1]Friesland Banken.wikipedia.org

  During the 1990s, Friesland Bank begins opening branches outside Friesland in provinces including Groningen, Drenthe, Overijssel, and North Holland.

• 1970

  The bank adopts the Friesland Bank name

  [1]Friesland Banken.wikipedia.org

  The Coöperatieve Zuivelbank changes its name to Friesland Bank, formalizing the regional identity used by the institution.

• 1913

  Coöperatieve Zuivelbank is founded

  [1]Friesland Banken.wikipedia.org

  The institution is established in Friesland as the Coöperatieve Zuivelbank, or Cooperative Dairy Bank.

A regionally focused Dutch retail bank with historical roots in Friesland and a branch network that later extended across the northern Netherlands.

• Banking

  Retail banking

  Friesland Bank was described as a Dutch retail bank serving customers primarily in the northern Netherlands. The available reference material establishes its regional retail-banking role but does not specify a complete list of branded accounts, lending products, investment services, or other offerings.

• 2014

  Exit from licensed bankingStrategy

  Background

  The Friesland Bank banking entity proceeded toward the end of its existence as a licensed bank after becoming a Rabobank subsidiary.

  Action taken

  Following revocation of its banking licence effective 15 December 2014, Friesland Bank N.V. changed its name to Friesland Zekerheden Maatschappij N.V.

  Aftermath

  The Friesland Bank name ceased to represent an active licensed banking institution.

  Source

• 2012

  Accepting Rabobank subsidiary statusM&A

  Background

  Friesland Bank was under significant financial pressure after losses, write-downs, loan losses, and a decline in capital ratios. A proposed merger with NIBC was blocked by De Nederlandsche Bank.

  Action taken

  On 2 April 2012, the bank announced that it would become a subsidiary of Rabobank.

  Aftermath

  The transaction ended Friesland Bank’s independence as a regional Dutch bank and brought the institution into the Rabobank group.

  Source

1. 1Friesland Banken.wikipedia.org