Emergency regulation in effect for DSB Bank N.V.
Press release
| Date | 12 October 2009 |
By decision of 12 October 2009, the Court has declared the emergency regulation applicable to DSB Bank N.V. of Wognum (DSB). The Court appointed R. Schimmelpenninck and J. Kuiper as administrators. The emergency regulation will facilitate a balanced representation of the interests of all account holders and other creditors. In addition, a procedure has been initiated to appoint receivers for the insurance components of DSB.
De Nederlandsche Bank N.V. (DNB) requested the emergency regulation because of a large outflow of liquidities that jeopardised DSB’s existence in the short term. Moreover, DSB’s solvency is under serious pressure.
Acting in close cooperation, DNB and the Ministry of Finance attempted to arrange a new start for DSB under the custody of a consortium of five banks: Rabobank, ABN Amro, ING, Fortis Nederland and SNS. Despite the constructive talks between the parties, this attempt was unsuccessful owing to uncertainty surrounding possible claims on DSB in relation to excessive loans and failures in fulfilling duty of care, as well as possible losses on issued loans. The risks were thus prohibitive and the application for the emergency regulation proved unavoidable.
The emergency regulation entails that account holders at DSB temporarily have no access to their funds. In consultation with the banks, DSB customers who have no current account at another bank will be able to open an account at another bank more rapidly than usual. Up until 24.00 hours on Wednesday of this week, DSB bank cards may be used to withdraw cash from other banks’ ATMs under the banks’ usual service for non-customers.
DNB expects that the Deposit Guarantee Scheme may be activated shortly. Under this scheme, which will be administered by DNB, deposits of up to EUR 100,000 (other than subordinated deposits) per account holder at DSB are guaranteed. DNB will provide information on the procedure by which account holders may apply for payment as soon as possible. DNB will provide this information through its website and in advertisements in the national newspapers. Account holders need hence take no action as yet.
Should you have any questions on the Deposit Guarantee Scheme please refer to DNB’s website or its Information Desk, freephone 0800-020 1068 (from 09.00 – 19.00 hours today and at least during regular office hours later in the week).
End of press release
Press representatives are invited to attend a press conference today at 13.30 hours at De Nederlandsche Bank, Westeinde 1 in Amsterdam. The Minister of Finance Wouter Bos and DNB President N. Wellink will attend. Please bring identification and a press card.
