Rabobank applied DIY valuations
After ANZ's marathon testimony, which stretched across three days,the royal commission into banking misconduct yesterday turned its attention to the actions of Rabobank Australia, part of a specialist global agribusiness group. And just when, after ANZ's revelations, it might have looked like the agribusiness lending sector had hit rock bottom in terms of reputation and empathy, Rabobank Australia came into the witness stand and kept digging. Bradley James, Rabobank Australia Regional manager for southern Queensland and northern NSW, said food and agribusiness lending was Rabobank's sole business in Australia. James has been with Rabo since 2011, and prior to that was with the same bank under a different structure.Currently Rabo has 61 rural branches in Australia, nine of them in James's region. Loans range from A$500,000 to upwards of $140 million, he said. The banks' greatest lending exposure is in broadacre farming: beef, sheep and grain. James had been called into the witness box after hearing from Wendy Brauer, a former Rabobank customer whose experience had turned from enthusiasm to bitter regret: "I recommended those jerks to other people," she exclaimed after giving testimony. What was possibly the most disturbing of the many revelations from Rabobank was the admission that staff members who were encouraged to write loans also were the banks valuers - for internal processes. It came as questions were being raised, as with other banks over the course of more than 30 days of hearings, "Why not release the valuation reports to the clients?" That would be unlikely, especially once it was revealed the assessments were conducted by managers who aren't trained valuers and the reports were merely for internal purposes. Rabobank's Bradley James is likely to continue with testimony this morning. Witnesses scheduled to be called over the next two days include Sinead Taylor, Bankwest's former executive general manager of business banking.