Friday, June 30, 2006

ABN AMRO and Rabobank concentrate cash processing activities

See this press releaseto find out that:
- Rabobank Nederland and ABN AMRO will launch a joint cash processing company named Gavea on 1 October 2006.
- Both banks are taking a 50% interest in the new company. Gavea will provide employment for 225 employees (full time equivalents) who will all be from ABN AMRO.

The two banks decided to cooperate in this field because the Dutch Central Bank will largely phase out its cash processing tasks from 1 January 2008. The daily counting and recirculation of euro notes and coins will then be transferred to recognised parties capable of meeting the very highest quality standards, as set by the Central European Bank. This means that responsibility for cash circulation and related activities will be transferred to the bank.

Cash processing is a relatively cost-intensive activity owing to the substantial investments as well as additional costs for e.g. security and continuity facilities. By joining forces, Rabobank Nederland and ABN AMRO aim to keep the long-term costs of cash processing under control.