AMSTERDAM--A veteran banker will leave the executive board of Rabobank with immediate affect Monday, after the supervisory board said he had lost the support of the banks that collectively own the Dutch lender.

Sipko Schat, who has worked at Rabobank for over 25 years, is the second executive to leave the bank after it reached a $1.07 billion settlement with regulators over the manipulation of the London interbank offered rate. Chief executive Piet Moerland resigned when the settlement was announced last month.

"This was a difficult decision for all parties," Wout Dekker, chairman of the supervisory board said. Rabobank said it will appoint a successor shortly.

Former ING Groep NV (ING) board member Marinus Minderhoud has taken over from Mr. Moerland temporarily until a successor is appointed.

"We are loosing...an international top banker; a respected colleague who has meant a lot for Rabobank," Mr. Minderhoud said.

Rabobank will remain under the close scrutiny of the Dutch Central Bank as it oversees the implementation of measures imposed following the investigation into the bank's role in the Libor-rigging case. Mr. Minderhoud is tasked with overhauling the bank's risk and compliance operations and pushing through a program to change the bank's culture and the behavior of its employees.

Write to Robin van Daalen at robin.vandaalen@wsj.com

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