Introduction of Ing

7/30/2019 Introduction of Ing

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stin broadband connections globally

1st

in commodity trading globally

1st

in global connectedness

1st most enterprising nation in Europe

2nd most wealthy country in Europe

3rd best country to live worldwide

3rd largest non-banking sector worldwide

(leasing, brokers, securitizations, money markets)

5th

best ICT infrastructure worldwide

6th

highest amount of innovative companies worldwide

7th

largest banking sector globally

7th

most developed financial sector globally

7th most stable financial centre globally

7th most competitive country worldwide

8th in GDP per capita globally

8th in world best universities

9th worldwide amount of company global headquarters

10th most open economy for international trade worldwide


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Insurance

In 1845 the fire insurance company the Assurantie Maatschappij tegen Brandschade de Nederlanden van 1845

(Fire insurance company of the Netherlands established 1845) was founded and grew to be the first insurance

company with branches outside the Netherlands, of which it had 139 the world over by 1900. Two decades later

in 1863 the life insurance company Nationale Levensverzekerings Bank (National Life Insurance Bank) was

founded in Rotterdam. These two insurance companies would merge to form the combined insurance company

the Nationale-Nederlanden in 1963. The combined insurance company would expand significantly during the

1970s and 1980s.

Banking

In 1881 the Dutch government created the Rijkspostspaarbank a postal savings system to encourage workers to

start saving. Four decades later they added the Postcheque and Girodienst services allowing working families to

make payments via post offices. Separately in 1927 the Dutch government initiated a reorganisation of Dutch

banks which resulted in the creation of the Nederlandsche Middenstands Bank (NMB). NMBs focus was retail

banking in the Netherlands and abroad.

In 1986 the post office banking services were privatised as Postbank N.V. and three years later it would merge

with NMB bank to form NMB Postbank.


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Merger of banking and insurance

In 1991 the banking business of NMB Postbank and the insurance business of Nationale-Nederlanden were

merged to create ING Group, after changes in regulation that allowed banks and insurance businesses to work

together.

Overseas expansion

ING Group expanded its international business through a number of acquisitions through the 1990s including

Belgium bank Bank Bruxelles Lambert (BBL) in 1998, US based insurance company Equitable of Iowa and the

comercial bank Furman Selz. It also acquired Frankfurt based BHF-Bank in 1999, although disposed of this

later. It increased its Latin American and Asia Pacific's insurance businesses with the acquisition of ReliaStar

and Aetna's Financial Services unit. It also acquired the Polish Bank lski and Mexican insurance company

Seguros Comercial Amrica.

However it was the 1995 purchase of Barings Bank after its dramatic failure that saw of ING Groups investment

banking business boosted significantly.

To expanding its retail banking business overseas, rather than create a branch network, it used the direct

banking business model it had develop with NMB Postbank to launch an overseas direct banking businesses

called ING Direct. The first of these was set up in Canada in 1997, this was soon followed in a number of other

countries including the US, UK, Germany, France and Australia. The no frills high rate savings accounts that

could only be accessed on-line were a successful venture and spawned a number of similar services from rival

banks.


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In the late-2000s financial crisis ING Group, together with all other major banks in the Netherlands, took a

capital injection from the Dutch Government in 2008 as part of its response to the crisis. This support increase

INGs capital ratio above 8%, however as a condition of Dutch state aid, the EU demanded a number of changes

to the company structure. This resulted in divestiture of a number of businesses around the world, whichincluded insurance businesses in Canada, Australia and New Zealand and the ING Direct unit in the US. ING

Group had paid back the Dutch government capital injection by Dec 2009.

Global headquarters

ING House, ING headquarters in Amsterdam

The Group's corporate headquarters, ING House, is located in the business district of Zuidas in Amsterdam,

Netherlands. It was designed by Roberto Meyer and Jeroen van Schooten and was officially inaugurated on

September 16, 2002 by Prince Willem-Alexander of the Netherlands. The light-infused building features a 250-

seat auditorium, foyer, restaurant, and library. The building also houses an extensive art collection.


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Divisions

Retail banking

ING offers retail banking services in the Netherlands, Belgium, Luxembourg, Poland, Romania, Turkey, India,

Thailand and China. Non-retail private banking services are offered in the Netherlands, Belgium, Luxembourg

Switzerland and various countries in Asia and Central Europe.

In the Netherlands, ING is the largest retail bank by market share, holding 40% of current account deposits.[9]

ING is followed by Rabobank (30%), ABN AMRO (20%), and others (10%).

Outside of the Benelux, ING's current focus is on Central & Eastern Europe, as well as certain high-growth

regions in Asia. In India, ING has a 44% stake in ING Vysya Bank and is the Indian bank's largest shareholder.

In China, ING has a 17% stake in the Bank of Beijing, the largest urban commercial bank in China. In Thailand,

ING has a 30% stake in TMB Bank, a universal banking platform with a nationwide network.

ING Direct

ING Direct is the Group's brand for a branchless direct bank with operations in Australia, Austria, Canada

France, Germany, Italy, Spain, the United Kingdom and the United States. It offers services over the web,

phone, ATM or by mail. The service currently focuses on simple interest-bearing savings accounts for retail

customers. ING Direct Italy is currently opening its own "bank shops" in the major towns, where customers can

operate services on usual web channels, assisted or not by branch operators, and use advanced teller machines

for cash and check transactions.


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ING Direct Canada

ING's history in Canada goes back to 1997 when it founded ING Direct Canada. As recently as July 2011, ING

Direct Canada had over 1.7 million clients, employed over 900 people and had over $37.6 billion in assets. ING

Direct Canada has five 'Save Your Money Cafs' in the major cities of Toronto, Montral, Calgary and

Vancouver. Recently, ING Direct Canada announced the closure of their bilingual (French & English) office

located in Ottawa Ontario Canada.[citation needed] and moved its operations to Moncton New Brunswick.

Its products include savings accounts, tax-free savings accounts (TFSAs), mortgages, retirement savings plans

(RSPs), guaranteed investments (GICs), mutual funds, business accounts and a no-fee daily checking accounts.

ING Direct Canada is a member of the Canadian Bankers Association (CBA) and registered member with the

Canada Deposit Insurance Corporation (CDIC), a federal agency insuring deposits of all Canada's charteredbanks. ING Direct Canada operates as Banking Institution #614, Transit #00152.

As of February 2009, ING Canada (the insurance arm) is no longer a subsidiary of ING Group. ING Group's

70% equity interest was spun off for $2.2 billion. The company (which has an 11% share of Canada's property

and casualty insurance market) was then renamed Intact Financial Corporation in May 2009. ING Group still

operates ING Bank of Canada, also known as ING Direct Canada.

ING Direct United States

Part of ING at night in Minneapolis, Minnesota in the United States

ING Direct was founded in 2000, with its headquarters in Wilmington, Delaware. ING Direct is a member of

the Federal Deposit Insurance Corporation (FDIC).

In September 2007, ING Direct acquired 104,000 customers and FDIC insured assets from a failed virtual bank

NetBank. Two months later, ING Direct acquired online stock broker Sharebuilder.

In June 2011, ING announced an agreement to sell ING Direct USA for a total consideration of $9 billion (EUR

6.3 billion) to Capital One Financial Corporation, a leading US-based financial holding company. Under the

terms of the agreement, ING will receive $6.2 billion in cash and $2.8 billion in the form of 55.9 million shares

in Capital One. With its pro forma 9.9% stake, ING will become the largest single shareholder in Capital One


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The sale of ING Direct USA to Capital One is expected to close in the fourth quarter of 2011 and is subject to

regulatory consent. After closing, ING has the right to be represented by one member of the Board of Directors

of Capital One.

The sale was completed on June 16, 2011 with the CEO of ING Group at that time Jan Hommen saying the sale

"marks a further important step in the restructuring of ING Group. Yet at the same time we are saying goodbye

to a very successful business and a dedicated team ...".

ING Direct UK

ING Direct began operations in the UK in May 2003 and has over one million customers. Operations are based

in Reading, where the company head office is situated as well as an office based in the city of Cardiff. The bank

markets itself as offering good customer service and high interest rates, which are usually higher than its high

street competitors, but not always top of comparison tables. The bank has picked up awards for its customer

services and mortgage product in 2008 and 2009.


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On October 8, 2008, ING purchased the savings accounts of the collapsed Icelandic bank, Kaupthing Singer &

Friedlander, the UK Treasury used the Banking (Special Provisions) Act 2008 to transfer the Kaupthing Edge

deposit business to ING Direct. Through this, ING Direct took over responsibility for 2.5 billion of deposits of

160,000 UK customers with the Icelandic bank Kaupthing Edge. Some customers were dissatisfied after INGlowered the exceptional high rate the collapsed Kaupthing was previously paying.

ING Directs products in the UK include Savings Accounts, Cash ISAs, Mortgages and Home insurance.

ING Direct Australia

ING Direct Australia was established in 1999 and is headquartered in Sydney, offering banking online and via

telephone. Its products in Australia include Transaction accounts, Savings accounts, Business accounts, Term

deposits and Home loans.

The company's operations are regulated by the Australian Prudential Regulation Authority and the Australian

Securities and Investments Commission, Federal Government regulators. ING Direct is a division of ING Bank

(Australia).

In October 2008, ING Direct suffered a $749 million outflow of deposit funds. There had been some confusion

as to whether or not the Australian Government's guarantee over funds on deposit applied to deposits up to $1

million with ING DIRECT Australia. Once it was confirmed that the Guarantee did apply to ING DIRECT

Australia, outflows that had been solely attributed to this situation slowed and deposits returned.[citation

needed]

Commercial banking

ING Commercial Banking, London office

ING Commercial Banking provides banking and financial services to corporations and other institutions. The

primary geographic focus of the commercial banking business is the Netherlands, Belgium, Poland and

Romania, where it offers a full range of products, from cash management to corporate finance. Elsewhere, it

takes a more selective approach to clients and products.


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ING Commercial Banking was strengthened in 1995, when ING took over Barings Bank. This acquisition

increased the brand recognition of ING around the world and strengthened its Commercial Banking presence in

the emerging markets. Following the acquisition and up until 2004, ING's investment banking division was

called ING Barings, at which point it severed its ties with the Barings name and combined with ING's othercommercial banking operations. However, the top floor of ING's London office is still home to the Baring Art

Collection,[21] and the Baring Foundation, a charitable foundation.

Commercial Banking is divided into a number of sub-divisions, including Structured Finance, Financial

Markets, and Corporate Finance.

Corporate finance

ING's Corporate Finance department advises businesses on important corporate transactions, including mergers

and acquisitions, initial public offerings, secondary offerings, share buy-backs and management buy-outs. The

division is headed jointly by Maurits Duynstee (Head of Corporate Finance, Continental Western Europe) and

Pierre Chabrelie (Head of Corporate Finance, UK and CEE). The bank has advised on a number of recent high-

profile European transactions including satellite navigation manufacturer TomTom in a 359m rights issue

energy supplier Nuon in its 8.5bn sale to Vattenfall, and printer-maker Oc in its 1.3bn merger with Canon

ING was the leading advisor in the Dutch M&A league tables in 2009.

ING Corporate finance has a strong presence in Russia and Central and Eastern Europe. In 2009 ING advised

Mobile TeleSystems OJSC (MTS), Russia's largest mobile operator, in its acquisition of a 51% stake in

Comstar UTS for USD 1.27bn,[24] and Russia-focussed oil producer, Exillon Energy on its USD 100m IPO.

Insurance

ING's insurance business operates throughout America, Asia and Europe.


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In 2009, ING announced plans to separate its insurance business from its main banking operations through two

IPO's, one for Europe and Asia and another one the US. The EuroAsia IPO has been delayed while the US IPO

is supposed to be completed by the end of 2012. Analysts estimate that the insurance arm is worth up to 16

billion.[26]

ING Australia

ING Australia was purchased by ANZ in 2009, and rebranded as "OnePath" in 2010.[27] ING Direct Australia

remains part of the ING group.

In December 2011, it was reported that ING Australia had been defrauded of $45 Million by an employee.[28]She was convicted and sentenced to 15 years jail.

ING Investment Management

ING Investment Management is the principal asset manager of the Group and a leading global asset manager

Against the background of the Group realizing its global ambitions, ING Investment Management has also

expanded across borders. Today, it is active in 33 countries, including some of the worlds fastest-growingeconomies, such as China, India, Brazil and many Eastern European nations. ING Investment Management

operates along regional lines with centers of expertise in Europe, the Americas and Asia-Pacific.

ING Investment Management provides a comprehensive range of investment solutions and services to clients

and partners. It manages assets for institutional clients, fund distributors and ING labels, with approximately

326 billion in AUM. Over 3,200 professionals manage client funds globally.[30]

Sponsorships

ING New York City Marathon


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ING sponsors a variety of sporting events and artistic exhibitions throughout the world.

Sporting

For several years, ING has been the title sponsor of various marathons including the New York City Marathon,

the Miami Marathon, the Georgia Marathon, the Hartford Marathon, the Philadelphia Distance Run and San

Francisco's Bay to Breakers.

ING is a major global sponsor of football/soccer, sponsoring the Royal Dutch Football Association and the

Asian Football Confederation (AFC).

ING was the title sponsor of the Renault Formula One team from the 2007 season to the 2009 season. It was

also the title sponsor of the Australian Grand Prix and Belgian Grand Prix, the Hungarian Grand Prix, and the

Turkish Grand Prix. ING ended its sponsorship of Renault in part due to a reduction in advertising spending,

and in part due to controversy surrounding the Renault Formula One team.

The arts

ING's sponsorships in the arts include the Dutch National Museum in Amsterdam (the Rijksmuseum), the New

York Museum of Modern Art, and also the Royal Concertgebouw Orchestra. ING also owns and houses a

number of proprietary art collections located in Belgium, Mexico, the Netherlands, Poland and the United

Kingdom.

ING in India:


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In India, ING is present in all three fields of banking, insurance and asset management in the form of ING

Vysya Bank, ING Life Insurance and ING Investment Management respectively. The presence in all three

fields signifies the importance that the group attaches to the Indian markets and the group's operations here, as

well as its bullish future outlook on the country.

ING Investment ManagementIndia

ING Investment Management (I) Pvt Ltd has been associated with innovation and responsive adaptability with

sharp minds at work. ING Investment Management has sealed a position of strength and is considered as one of

the top contenders to challenge the market leaders. ING Investment Management has enjoyed many firsts andhas always maintained a pioneering outlook.

ING Investment Management India operates under two divisions

A Single Manager division called ING Investment Management division. Under the Single managerbusiness ING offers a range of equity, debt and alternative asset class funds. Each fund follows a

stringent investment process backed by ING Investment management in house research. A Multi Manager division called OptiMix. OptiMix is Indias first Multi Manager Investment solution

featuring open architecture, zero brand bias and active management. At OptiMix, the belief is to

construct a Multi Manager fund is not by simply combining the funds with the best performance records


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Instead, use core research and proprietary investment tools to blend funds which offer the potential for

superior, consistent performance in the future.

Banking Industry In Natherland

The banking industry plays a central role in every economy. The Dutch economy, too, would be unable to

function without the many forms of bank services. Banks extend loans to businesses and private persons,

making it possible for them to invest. Furthermore, they handle payments and securities transactions, manage

savings, and advise and guide enterprises when they go public. In fact, there is a package of products and

services tailored to the needs of every individual. The aggregate balance sheet total, which amounted to EUR

2,807 billion as at the end of September 2005, underlines the banks economic importance. The banking

industry is also a major employer, with a total work force in the Netherlands of about 110,000 and

approximately 160,000 with Dutch banks abroad. Please refer to our annual report for an overview of the

balance sheet total and the number of employees employed in the banking industry.

Relation to the regulatory authorities

It is important that the publics trust in the banks remain inviolate. For this and other reasons, the Dutch centralbank (De Nederlandsche Bank, DNB) sees to it that the banks operate in a sound and prudent way. With its

system of licenses, and monitoring compliance, DNB ensures that banks meet certain minimum requirements

The regulators also supervise the integrity of the financial system and the management. Another regulatory


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body is the Netherlands Authority for the Financial Markets (Autoriteit Financile Markten, AFM), which is in

charge of the supervision of conduct of all financial institutions. Supervision in the Netherlands is of high

quality.

Relation with the public authorities

As well as with the regulatory authorities, the banking industry also has to deal with the Dutch public

authorities. Formal and informal consultations about a range of issues are held with the House of

Representatives (Tweede Kamer). Consultations with ministers and officials at the various ministries, (notably

the Ministries of Finance, Economic Affairs, Justice, and Social Affairs and Employment) are also an important

activity. More and more recommendations, directives and regulations issued by Brussels demand attention

European bodies, such as the European Commission, the European Parliament, and the European Council are

therefore also important focal points

Relation to society

Corporate social responsibility or sustainable enterprise is a notion that has become an integral part of the banks

business operations. Banks are aware of their position in society and focus their attention on a large number of

issues that fall within NVBs competence. These issues may be connected with environmental aspects, lending

payments, the banks contribution to the fight against terrorism and fraud and a range of other subjects

Growing demand for transparency and openness, too, is an important development where banks take the lead.


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BIBILIOGRAPHY


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CONCLUSION


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SUGGESTION

Documents

Introduction of Ing