Stress test disruptive energy transition

DNB has developed a targeted stress test to gain insight into the possible impact of a disruptive energy transition on the financial sector of the Netherlands. The stress test is described in Chapter 4 of the Fall 2018 Financial Stability Overview . On the basis of four stress scenarios involving policy and technology shocks, the stress test investigates how financial institutions might be affected. The results suggest that a disruptive energy transition could lead to sizeable losses for financial institutions. Governments can help to avoid unnecessary losses through a timely implementation of effective climate policies, while financial institutions can mitigate their vulnerability to a disruptive energy transition by including energy transition risks in their risk management.
More details can be found in the Occasional Study and Web-appendix .

Indicators of Financial Stability

What is financial stability?

The financial system is at the heart of the economy. It enables people to save, borrow, invest and hedge financial risks that they are unwilling to bear themselves. A stable financial system guarantees that payments can be made securely and quickly. These services are often taken for granted, even though they are essential to the functioning of the economy. This is why DNB is committed to maintaining a smoothly operating financial system that is sufficiently resilient to shocks and contributes towards creating sustainable economic growth in the Netherlands.

What is financial stability?

How does DNB promote financial stability?

DNB is committed to ensuring stable prices, solid financial institutions and a properly functioning payment system. These elements are all essential to maintaining a smoothly operating financial system. DNB also focusses on risks that may harm the financial system as a whole, warns against these risks and issues advice. For instance by arguing for a limit to the amount of mortgage loans that home owners are allowed to take out. We also improve the financial system's resilience by requiring financial institutions to strengthen their buffers. To this end,

How does DNB promote financial stability?