20 December 2017 - Economy
SRB presents its MREL policy
The Single Resolution Board (SRB) presents its policy regarding the application of the minimum requirement for own funds and eligible liabilities (MREL). Early 2018, the first consolidated MREL requirement will be set for banking groups under the SRB's direct management (significant institutions). The MREL policy prescribes the general methods for determining the total loss absorbing capacity (TLAC).The policy will be specified in more detail in 2018, and its calibration will be focussed more on individual institutions.
20 December 2017 - Economy
DNB publishes communication on the operation of the bail-in tool
The communication describes how DNB expects to write down shares and reserves and convert debt instruments into shares. It also discusses matters such as the conversion rate and the various valuations applied in a bail-in operation based on the "no creditor worse off" principle. Further to the comments to its consultation document from June 2016, DNB clarified its communication on a number of issues.
18 December 2017 - Economy
Economy is going at full speed
The economic prospects in DNB's six-monthly projections have been adjusted upwards compared to six months previously. Broad-based economic growth in 2017 is expected to amount to 3.3%. Growth will continue at above-trend rates in the next two years, at 3.1% and 2.3%, respectively. The overcapacity seen in recent years has now disappeared. Over the projection horizon, cyclical tension in the economy and the labour market will increase further and the economy will enter a boom phase.
13 December 2017 - Pensions
European stress test confirms vulnerabilities of pension funds
Compared to other European countries, the Dutch pension sector is vulnerable to financial market shocks. The results of a stress test show that an extremely adverse but not unimaginable scenario in the financial markets will have a major impact on the capital positions of Dutch pension funds. The stress test was conducted among European pension funds by EIOPA, the European Insurance and Occupational Pensions Authority.
13 December 2017 - Economy
Fed raises interest rates
The Fed raises interest rates for the third time this year, by 25 basis points, with a bandwidth of 1.25% to 1.50%. The Fed expects to also raise the rates three times in 2018.
12 December 2017 - Financial sector
Central banks join forces to promote sustainability
Eight central banks and supervisory authorities, including DNB, have joined forces to promote sustainability in the financial system. They announced their initiative at the One Planet Summit in Paris. In addition to DNB, the Network of Central Banks and Supervisors for Greening the Financial System comprises the central banks and supervisory authorities of the United Kingdom, Germany, France, Sweden, China, Mexico and Singapore.
08 December 2017 - Europe
Second stage of Brexit negotiations
The European Council sees sufficient progress to start the second stage of the Brexit negotiations. The United Kingdom (UK) and the 27 EU countries have reached agreement about the border between the UK and Ireland, the rights of EU citizens in the UK and British citizens in the EU, and the amount of the Brexit bill.
08 December 2017 - Economy
Amendment to prudential requirements for proprietary traders
DNB amends the prudential regime for proprietary traders. Previously, DNB considered proprietary traders to be local firms, which exempted them from having to comply with the capital requirements of the Capital Requirements Regulation (CRR). The European Banking Authority (EBA) however took the view that DNB's interpretation of the term "local firm" was too broad. While DNB continues to believe that its policy was sound and proportionate, it has nevertheless decided to apply the CRR capital requirements to the investment firms involved.
07 December 2017 - Basel III
The Basel Committee publishes a discussion document on the treatment of government debt
The Basel Committee publishes a discussion document on the treatment of government debt in the capital framework for banks. The current preferential treatment of government debt is based on the misconception that government debt is risk-free and losses will never occur. Moreover, it reinforces the interconnectedness of banks and governments, potentially causing contagion. The discussion document outlines several potential policy actions for phasing out this preferential treatment. At this stage, the Basel Committee has not reached a consensus on taking further action.
07 December 2017 - Basel III
The Basel Committee completes post-crisis reforms for banks
The Basel Committee on Banking Supervision reaches agreement on a new framework for calculating capital demands for banks. This entails a new, standardised method for calculating operational risk and a leverage ratio add-on for global systemically important banks (G-SIBs). In addition, an output floor for capital requirements will be set for banks: when applying the Internal Ratings-Based Approach, the banks' capital requirements may never fall below 72.5% of the capital requirements under the Standard Approach. This will create more uniformity in the ways in which banks calculate their capital buffers. The framework will increase the capital requirements for the major Dutch banks. Given their strong capital and profit positions, they are expected to be able to comply with these tightened requirements in good time. On a global scale, the framework will contribute to a level playing field and will improve the banks' resilience to shocks.
06 December 2017 - Europe
ECB takes steps to improve the European market infrastructure
The ECB's Governing Council decides to modernise TARGET2 and consolidate it with TARGET2-Securities (T2S). TARGET2 is the European Union's real-time interbank large-value funds transfer system. T2S is the single European platform for securities settlement in central bank money. The consolidation operation will make the system more efficient and facilitate a more practical liquidity management system for banks. The system is expected to go live in November 2021. In addition, the Eurosystem will develop a common collateral management platform for all euro area central banks, the Eurosystem Collateral Management System (ECMS), which will be used for harmonised collateral management functions in the Eurosystem. The ECMS should be operational in November 2022.
05 December 2017 - Europe
Launch of public consultation regarding legislative proposal on banks' creditor hierarchy
Further to a European agreement to review the Bank Recovery and Resolution Directive (BRRD), a national proposal to adjust the creditor hierarchy in the event of liquidation is put up for consultation. This adjustment provides banks with the option of issuing non-preferred senior unsecured debt instruments that are subordinated to other ordinary creditors (such as derivatives), but more senior than capital instruments. This increases the number of eligible instruments for the minimum required loss absorbing capacity.
28 November 2017 - Insurers
Legislative proposal for resolution regime for insurers submitted to the Dutch Lower House
With a view to safeguarding financial stability and protecting policy holders, the Ministry of Finance submits a legislative proposal for the recovery and resolution of insurers. The proposal provides for a national resolution regime targeted at larger insurers. The regime includes resolution planning, measures aimed at removing impediments to resolution and tools to enable continuation of an insurer's critical functions.
21 November 2017 - Supervision
DNB publishes supervisory focus areas for years ahead
DNB's supervisory priorities for the next few years are responding to technological innovation, fostering future orientation and sustainability, and taking a hard stance against financial and economic crime . DNB announces this in its "Supervisory Strategy 2018-2022", which sets out DNB's supervisory focus areas in addition to its regular supervisory priorities. These focus areas are formulated for the financial sector as a whole, as the underlying societal trends and economic challenges do not just apply to just one, but to all parts of the sector.
02 November 2017 - Europe
Bank of England increases rates
For the first time in a decade, the Bank of England (BoE) increases its policy interest rate to 0.5% from 0.25%. The Monetary Policy Committee voted 7-2 in favour of this decision. The BoE indicates that any future interest rate increases will be limited and gradual, and depend on developments regarding Brexit.
26 October 2017 - Europe
The ECB continues its purchase programme at half the current volume
The Governing Council of the ECB decidesto extend its asset purchase programme by nine months to September 2018. Starting January 2018, the monthly volume is scaled down to EUR 30 billion from EUR 60 billion. The Governing Council also confirms that reinvestments of the existing portfolio will be continued after discontinuation of the net asset purchases. Although the ECB has not yet announced a date, Draghi affirms not to terminate the programme abruptly. The decision is taken against the background of broad-based economic growth.
25 October 2017 - Financial sector
Monte dei Paschi re-enters Borsa Italiana
Monte dei Paschi (MPS) bank returns to the Milan stock exchange after a 10-month suspension following a failed private recovery operation. The bank was recapitalised in July. At EUR 4.19, the share's opening price is 72% below its final closing price. The Italian government now owns 70% of the shares.
10 October 2017 - Europe
Rutte III Cabinet presents its policy programme
In its policy programme, the government announces its intention to reform the housing market and the pension system. Tax benefits for home owners will be decreased by accelerating the reduction of mortgage interest relief. The Hillen Act will be phased out within 30 years. The government intends to abolish the average contribution system and has asked the Social and Economic Council of the Netherlands (Sociaal-Economische Raad – SER) to issue an opinion on the reform of the pension system.
09 October 2017 - Supervision
ECB stress test shows that interest rate risk management is adequate at most European banks
An ECB stress test shows that interest rate risk management is adequate at most European banks. The ECB conducted the stress test among all European significant banks under the Single Supervisory Mechanism (SSM), including the six Dutch significant banks.
06 October 2017 - Economy
FSB study into the effects of financial regulatory reforms
Klaas Knot is appointed chair of a new working group of the Financial Stability Board that is to study the effects of financial regulatory reforms on financial intermediation. In the first instance, the working group will focus on the effects on infrastructure investment, in line with the G20's agenda. At a later stage, the working group will also look into the impact on other forms of financial intermediation, like loans to SMEs.
05 October 2017 - Economy
DNB issues report on climate risks
DNB's report focuses on the impact of climate risks on the Dutch financial sector, which can be felt increasingly strongly in an increasing number of areas. For example, non-life insurers are likely to experience a rise in claims as a result of changing weather patterns. The transition to a carbon neutral economy also poses risks to the financial sector. Financial institutions should take this more and more into account. DNB intends to embed climate-related risks more firmly in its supervision with the ultimate aim of ensuring sustainable financial stability.
04 October 2017 - Supervision
Deposit Guarantee Scheme for the Caribbean Netherlands enters into force
The Deposit Guarantee Scheme for the Caribbean Netherlands (DGS CN) is specifically aimed at the residents of Bonaire, Sint Eustatius and Saba and guarantees savings deposits up to the amount of USD 10,000. The DGS CN is operated by DNB.
27 September 2017 - Supervision
DNB welcomes Netherlands Court of Audit report on banking supervision
DNB welcomes the Netherlands Court of Audit report, which concludes that the DNB's supervision of medium and small banks is well set up and its implementation is comprehensive and decisive.The Court also issues a number of useful recommendations for further strengthening DNB's internal operational processes and updating the existing agreements on information sharing and cooperation with the Ministry of Finance. Furthermore, DNB could take steps to provide more clarity about the capital and liquidity requirements it imposes on small and medium-sized banks.
21 September 2017 - Economy
FED announces balance sheet reduction
The Fed announces it will shrink its balance sheet by USD 10 billion a month (USD 6 billion in treasuries and USD 4 billion in mortgage-backed securities). The monthly reduction will gradually be increased to USD 50 billion, a rate that will be maintained until the Fed considers the balance sheet has been reduced sufficiently.
18 September 2017 - Supervision
TARGET2-Securities fully operational
With the migration of four central securities depositories, the European platform for settlement of security transactions, TARGET2 Securities (T2S) is now fully operational. T2S has been developed on the basis of harmonising rules and procedures for national settlement systems since 2008.
18 September 2017 - Statistics
DNB and Statistics Netherlands enter into cooperation agreement
DNB and Statistics Netherlands (Centraal Bureau voor de Statistiek – CBS) establish a new cooperation chain for macroeconomic statistics to strengthen the quality and consistency of figures about the Dutch economy, with a particular focus on the balance of payments and the national accounts.
15 September 2017 - Financial sector
Dutch State sells further tranche of ABN AMRO shares
The State reduces its interest in ABN AMRO from 63% to 56%. As with the previous tranche sold in June, the issuance involves the sale of 65 million depositary receipts to institutional investors.
14 September 2017 - Financial sector
Dutch State divests remaining interest in ASR
The Dutch State sells the remaining 20.5% stake that it holds in ASR. This sale means that the State has fully divested its interest in ASR after 15 months.
25 July 2017 - Europe
Greece returns to bond market
After a hiatus of three years, Greece makes a successful return to the bond market, raising EUR 3 billion on the sale of a new five-year bond. The yield on the bond was priced at 4.625%, lower than the yield on the five-year bond sold in 2014 (4.95%). The book was oversubscribed by more than a factor of two.
21 July 2017 - Economy
Strong, non-credit driven rise in house prices
Statistics Netherlands and the Land Registry (Kadaster) announce house prices are up 8% in June, compared to June 2016. This is strongest rise in house prices since March 2002. House prices are now higher than pre-crises level in each of the four major cities. A DNB study reveals that the housing markets in major cities are showing signs of overheating. However, there is as yet no sign of a credit-driven bubble, partly because more is being financed with personal funds. Soaring house prices are mainly due to scarcity pricing, coupled with the growing shortage of mid-market rental housing.
21 July 2017 - Financial sector
Final SCV policy rule established
As part of its mandate to implement the deposit guarantee scheme (DGS), DNB has published new DGS regulations about the single customer view (SCV). The SCV is a file providing detailed information on the deposits a customer holds at a bank. The SCV is necessary to reduce the DGS payout deadline to seven business days. The SCV policy rule prescribes what data banks must compile, the period in which they must do this and what quality requirements they must meet. The SCV contributes to the feasibility of resolution instruments.
06 July 2017 - Financial sector
FSB publishes guidance on internal TLAC and access to financial infrastructures
The Financial Stability Board (FSB) publishes guiding principles on total loss-absorbing capacity (TLAC) and the access to financial infrastructures for a bank in resolution. The resolution authorities apply these guiding principles when determining how the loss-absorbing capacity is to be distributed across the entities in the group which will be recapitalised by bail-in. The guiding principles also contain recommendations about access of banks in resolution to clearing, payment and settlement services.
05 July 2017 - Insurers
5 July: EIOPA opinion on recovery and resolution
The European Insurance and Occupational Pensions Authority (EIOPA) publishes an opinion in which they call on the European Commission, the Parliament and the Council to develop a European harmonised recovery and resolution framework for insurers. This opinion is an important step on the way towards a European framework.
28 June 2017 - Supervision
IAIS takes first step towards global regulatory standards for international insurance groups
The International Association of Insurance Supervisors (IAIS), publishes a document outlining various options for capital standards for insurers, Insurance Capital Standards (ICS) 2.0.This document also sets out the next steps in establishing ICS 2.0. As an IAIS member, DNB supports the development of ICS as it can make a valuable contribution to improved supervision of international insurance groups.
28 June 2017 - Financial sector
Dutch State reduces stake in ABN AMRO
The State sells a third tranche of 65 million depositary receipts for shares in ABN AMRO. The sale of the 7% stake generates EUR 1.5 for the Dutch government. The price per depositary receipt is EUR 22.75, over 28% higher than the IPO price.
23 June 2017 - Europe
Veneto Banca and Banca Popolare di Vicenza put into resolution
The ECB declares the banks are failing on 23 June after they repeatedly breached supervisory capital requirements. The Single Resolution Board (SRB) concludes that resolution action under the single mechanism is not warranted in the public interest. The banks are wound down under national insolvency law. Some of their assets are transferred to Intesa Sanpaolo, Italy's largest bank, which protects senior debt holders. The operation is financed with EUR 5.2 billion of taxpayers' money. The remainder of the banks' assets are liquidated under the auspices of the Italian State.
22 June 2017 - Payments
New European system for instant payment settlements
The ECB's decision paves the way for the development of a new instant payment system – TARGET instant payment settlement (TIPS). TIPS will enable citizens and firms to transfer money between each other in real time and will be available 24/7/365. TIPS is scheduled to start operating in November 2018.
16 June 2017 - Supervision
DNB addresses parliamentary committee of inquiry into tax structures
Directeur Frank Elderson en divisiedirecteur Willemieke van Gorkum worden gehoord door de parlementaire ondervragingscommissie fiscale constructies over de wijze waarop DNB toezicht houdt op de trustkantoren. Naar aanleiding van de Panama Papers heeft de Tweede Kamer in oktober 2016 besloten tot een beperkte parlementaire enquête naar belastingontwijking via onder andere trustmaatschappijen. Deze parlementaire ondervragingscommissie doet onderzoek naar fiscale constructies en naar de werkwijze en fiscale adviespraktijk van trustkantoren.
15 June 2017 - Rente
FED raises interest rates and announces balance sheet cuts
As expected, the Federal Reserve raises interest rates by 25 basis points to a margin of 1.00% - 1.25%, and maintains its forecast of a third hike later this year. The FED also unveils the first plans to reduce its balance sheet, which has grown substantially due to the various purchasing programmes introduced during the financial crisis.
13 June 2017 - Economy
ECB purchases Chinese renminbi for the first time
For the first time, the ECB has converted EUR 500 million of its US dollar reserves into Chinese renminbi. The ECB already took the decision to diversify reserves into renminbi in January. The investment reflects the importance of China as a euro area trading partner.
13 June 2017 - Financial sector
State cuts stake in ASR further
The Dutch State sells more shares in ASR at a price of EUR 29 per share, reducing its stake in the insurer to 20.1%.
13 June 2017 - Supervision
European Commission issues proposal for European CCP supervision
The proposal assigns a larger role to the European Securities and Markets Authority and the ECB in the supervision of CCPs outside the EU, insofar as these are relevant for financial stability in the EU. This marks the first step towards fully-fledged European CCP supervision.
12 June 2017 - Economy
Dutch economy posts strongest growth in a decade
In its half-yearly forecast, DNB estimates economic growth in the Netherlands will peak at 2.5% in 2017, a rate not seen since 2007. The next two years are likely to see robust growth of around 2%. Unemployment is expected to fall to 4.4% in 2019 on the back of this economic growth. Public finances will also benefit from the growing economy; with the budget surplus forecast to edge up to over 1% of GDP in 2019. Inflation is set to be between 1% and 1.5% in the period 2017-2019.
07 June 2017 - Europe
Banco Popular Español S.A. put into resolution under single resolution mechanism
The Single Resolution Board (SRB) puts Banco Popular Español S.A. into resolution after the ECB established the bank was failing. Banco Popular Español S.A. is sold for a symbolic €1 to Banco Santander S.A. The construction protects senior debt holders, while shareholders, AT1 and Tier 2 investors have to take losses. Santander launches a EUR 7 billion rights issue to finance the takeover. It is the first time that the SRB has put a bank into resolution.
31 May 2017 - Europe
EU signs agreement on securitisations
The European Parliament and the Member States introduce legislation to stimulate the European securitisation market. The agreement includes setting out the criteria for "simple, transparent and standardised" securitisations.
31 May 2017 - Payments
Banks present plan for joint ATM network
The three largest banks and Geldservice Nederland (GSN) announce that they are in discussions to bring their ATMs together in a joint network. Although cash use is gradually declining, they want to ensure it remains a widely available, accessible, affordable and secure payment option.
19 May 2017 - Insurers
DNB advises on bill to ban health insurers distributing profits to shareholders
DNB issues a letter in response to a request from the Minister of Finance for insight into the consequences for capital adequacy of the bill banning health insurers from distributing profits. The letter indicates several uncertainties in the bill, as well as the possible negative effects on health insurers' capital adequacy and recovery options.
15 May 2017 - Insurers
DNB transfers life insurer Conservatrix to new owner
De Nederlandsche Bank gets approval from the Amsterdam District Court to transfer the shares of life insurer Conservatrix to a new owner, Trier Holding BV, a Dutch company owned by American investor Eli Global. DNB asked the court for permission to transfer the shares, because Conservatrix did not have sufficient funds to meet its future obligations to policyholders. This is the first time the supervisory authority has used this instrument of forced transfer.
10 May 2017 - Europe
ECB president visits Dutch Lower House
European Central Bank president Mario Draghi addresses the Lower House of Dutch Parliament. He is invited by the Standing Committee for Finance to discuss the necessity, background and effects of unconventional monetary policy implemented in the wake of the financial crisis.
05 April 2017 - Financial sector
State becomes minority shareholder after ASR sale
The State reduces its stake in ASR by 13.3%, to become a minority shareholder with a stake of 36.8%. The third tranche of 20 million shares is sold at a price of 25.75 per share, generating EUR 515 million.
04 April 2017 - Financial sector
Financial sector cooperates on transition paths for more rapid reduction of CO2
The Dutch Ministries of the Interior and Kingdom Relations, Economic Affairs, and Infrastructure and the Environment are working together to forge new transition paths to a low-carbon society in 2050. The financial sector was asked to contribute. Members of the Sustainable Finance Platform express their support for this at a meeting held on 4 April at DNB, and chaired by Executive Director Frank Elderson. The members also discuss other sustainability initiatives in the financial sector and the working groups present the progress they have made on their dossiers.
04 April 2017 - Payments
Launch of new EUR 50 banknote
The Eurosystem starts circulating the new €50 banknote. The banknote has new security features, such as a portrait window and an emerald number, which offer enhanced protection against counterfeiting.
03 April 2017 - Financial sector
IMF publishes results of Financial Sector Assessment Program
The main conclusions of the Financial Sector Assessment Program which the International Monetary Fund (IMF) conducts every five years are that the Dutch financial system is resilient to shocks, and supervision of financial institutions has been strengthened following the crisis. The IMF's recommendations include accelerated reduction of the LTV ratio and mortgage interest tax relief.
01 April 2017 - Financial sector
S&P introduces green rating
Standard & Poor’s (S&P) introduces a green rating for bonds. The rating comprises two parts: "E" measures the company's impact on the environment and "R" indicates how resilient the company is to climate change. Both ratings operate on a scale of 1 to 5, with E1 and R1 being the highest scores.
23 March 2017 - Europe
Mass participation of banks in last round of TLTRO II
European banks take up loans amounting to EUR 233.5 billion in the final round of the new series of targeted longer-term refinancing operations (TLTRO II). The total take-up for all four rounds amounted to EUR 740 billion. TLTRO II allows banks to obtain four-year loans from the Eurosystem at a rate of 0% to -0.4%.
22 March 2017 - Supervision
22 March – 22 June: DNB implements DGS interest compensation settlement
At the end of December 2016 the Trade and Industry Appeals Tribunal ruled that consumers who had previously claimed compensation under the deposit guarantee scheme (DGS), but who received their payments late, were now eligible for supplementary compensation for the lost interest. The Minister of Finance announces a settlement to compensate these consumers. Under the interest compensation settlement, 19,000 account holders are eligible for compensation totalling EUR 1.6 million. As the DGS authority in the Netherlands, DNB implements the settlement. Contact was made with former account holders of DSB, Icesave, Van der Hoop and Indover who were entitled to supplementary compensation. From 22 March to 22 June over EUR 850,000 was paid to over 7,000 former account holders.
20 March 2017 - Europe
ECB publishes guidance on non-performing loans
The guidance is an important step in tackling non-performing loans (NPLs) in the euro area. The ECB does not stipulate quantitative targets to reduce NPLs. Instead, it asks banks to devise a strategy to reduce them.
16 March 2017 - Rente
FED raises interest rates
The Federal Reserve raises interest rates by 25 basis points to a margin of 0.75% - 1.00%. The FED also forecasts a total of three rate hikes in 2017 in the face of a broadly unchanged economic outlook.
01 March 2017 - Economy
DNB acquires asset-backed securities under the APP
In addition to sovereign bonds and covered bonds, DNB also starts acquiring asset-backed securities under the ECB's asset purchase programme. The purchasing of these assets was previously outsourced to external parties. The monthly purchase volume under the APP has been reduced from EUR 80 billion to EUR 60 billion.
25 January 2017 - Supervision
DNB publishes assessment framework to facilitate the audit function of trust offices.
Since 1 January 2015 trust offices should have an independent and effective audit function in place to strengthen sound and ethical operational management. DNB examinations show that the audit function is still not adequately set up at all trust offices. To offer the trust sector some guidance on how to improve effective implementation of the audit function, DNB publishes its assessment framework.
12 January 2017 - Financial sector
FSP publishes policy recommendations to address structural weaknesses in asset management.
The Financial Stability Board (FSB) publishes its recommendations to reduce liquidity and leveraged risks at investment funds. The increasingly prominent role investment funds play in the international financial system requires additional policy to boost this sector's resilience to shocks. The FSB's recommendations provide a basis for further developing macroprudential policy for investment funds.
23 December 2016 - Europe
Deutsche Bank settles for USD 7.2 billion
Deutsche Bank settles with the US Department of Justice and agrees to pay USD 7.2 billion for its sale of subprime mortgages prior to 2008. USD 4.1 billion will be used to compensate customers, the remaining USD 3.1 billion constitutes a fine.
23 December 2016 - Supervision
Bailout of Italian bank Monte dei Paschi di Siena announced
After Monte dei Paschi failed to raise private capital to strengthen its capital position in December, the Italian government decides to save the bank with a precautionary recapitalisation. It is willing to increase public debt by EUR 20 billion to save Monte dei Paschi (EUR 6.6 billion) and a number of other problem banks. In the case of Monte dei Paschi's resolution, shareholders and institutional holders of hybrid capital and subordinated debt will have to bear part of the losses.
23 December 2016 - Supervision
Nationale Nederlanden and Delta Lloyd reach agreement on takeover
After three months, Nationale Nederlanden (NN) and Delta Lloyd reach agreement on a takeover: NN will pay EUR 5.40 per share. This is a premium of 55% on Delta Lloyd's listed price in the three months preceding the initial offer. The bid values Delta Lloyd at EUR 2.5 billion. NN will fund the takeover with EUR 1.4 billion in cash and EUR 1.1 billion in debt.
21 December 2016 - Supervision
The AFM and DNB introduce "regulatory sandbox" to ease access to the market
Prompted by rapid financial-technological developments, DNB and the AFM introduce a regulatory sandbox to ease access to the market for financial service provision for innovative services.
15 December 2016 - Supervision
EIOPA publishes results of European stress test for insurers
The European Insurance and Occupational Pensions Authority (EIOPA) publishes the results of a stress test for 236 European insurers. The results confirm that European life insurers are sensitive to scenarios featuring prolonged low interest rates or shocks to investments in a low interest rate environment.
14 December 2016 - Economy
FED raises interest rates
As expected, the Fed raises its interest rates by 25 basis points to a margin of 0.50% - 0.75%. It was a unanimous decision. The Fed is expecting three rather than two further interest rate increases in the course of 2017, and has also adjusted its rate level expectations for 2018 and 2019 upwards.
14 December 2016 - Financial sector
DNB decides to reciprocate macroprudential measures
On its Open Book on Supervision pages, DNB announces that it will in principle reciprocate macroprudential measures imposed by supervisory authorities in other EU member states under the ESRB framework, in order to safeguard the effectiveness of macroprudential policy. This means that DNB will apply these measures to the activities of Dutch banks operating in the relevant EU Member State through a branch or through the provision of cross-border services.
13 December 2016 - Supervision
Ottow Committee presents its assessment procedure evaluation
The external evaluation committee for the AFM's and DNB's assessment of management and supervisory board members, headed by Professor Annetje Ottow, concludes that the AFM and DNB adequately perform their task. The Committee makes several recommendations to further improve the assessment procedure .
08 December 2016 - Economy
ESRB warns about the Dutch housing market
The European Systemic Risk Board (ESBR) warns that the Dutch housing market poses a systemic risk to financial stability. The high debt level of Dutch households in particular poses a threat. Half of all homeowners under 40 have a debt that exceeds the value of their home. This makes households vulnerable to financial shocks. According to the ESRB, the government's actions to mitigate this vulnerability may be insufficient. The ESRB acknowledges, however, that Dutch banks are well-capitalised. In its response, the Ministry of Finance appreciates the ESRB's analysis but refers to the measures the government has taken.
08 December 2016 - Europe
ECB extends its purchase programme at a lower pace
The Governing Council of the ECB decides to extend its asset purchase programme by nine months, until the end of 2017. From April 2017 onwards, the monthly purchasing volume will be lowered from EUR 80 billion to EUR 60 billion. To prevent potential scarcity of eligible government bonds, purchases of securities with a yield to maturity under the deposit facility rate limit (-0.40%) will be permitted. In addition, the maturity range of purchasable paper will be decreased from two years to one year. The decision was taken against the background of a recovering economy with still limited inflation.
07 December 2016 - Europe
European Council and Parliament reach agreement on money market fund regulation
The regulation aims to make money market funds more resilient to shocks and contains rules on the composition of investment portfolios, liquidity and transparency.
01 December 2016 - Payments
Royal Joh. Enschedé ceases its banknote production
Royal Joh. Enschedé announces to cease its banknote production. Pending orders will be completed in 2017. From now on, DNB will have its euro banknotes produced abroad.
28 November 2016 - Europe
European Commission launches proposal for CCP recovery and resolution regulation
The proposal for a regulation on a framework for the recovery and resolution of central counterparties (CCPs) aims to safeguard financial stability, ensure the continuity of these systemically important parties in crisis scenarios, and prevent taxpayers from having to pay the price for losses resulting from failing CCPs. The increased use of CCPs for the settlement of derivatives enhances financial stability, but at the same time leads to a concentration of risks at these institutions.
24 November 2016 - Economy
SRB adopts resolution plans for four Dutch banks
The Single Resolution Board (SRB) adopts the resolution plans for the four Dutch banks under its direct responsibility. For the first time, these banks have gone through the SRB's entire planning and adoption process. In this process, DNB and the SRB have identified the entities responsible for performing critical functions at these banks, determined a resolution strategy, and established indicative minimum requirements for own funds and eligible liabilities (MREL).
23 November 2016 - Europe
European Commission publishes proposals for the implementation of TLAC and amendment of the BRRD
The Commission's proposals enact the global loss absorbing capacity (TLAC) standard for G-SIBs through an amendment of the provisions in the Bank Recovery and Resolution Directive (BRRD) with respect to the minimum requirement for own funds and eligible liabilities (MREL). The Commission also intends to confer upon national resolution authorities the power of imposing a moratorium. Finally, it proposes a number of amendments to the BRRD to make financial contracts that are not subject to EU law, resolution-proof.
23 November 2016 - Europe
Review of the European Capital Requirements Directive
The European Commission publishes a set of legislative proposals as part of its review of the European Capital Requirements Directive and Regulation for banks.
22 November 2016 - Payments
Sale of the Royal Dutch Mint
The Dutch State sells the shares of the Royal Dutch Mint (KNM) to a Belgian investment firm. To safeguard the public interests, the Ministry of Finance has requested DNB to take over a number of the Mint's public duties as of 1 January 2017. This includes the management of the coin stock and the dies, the collection of damaged coins, the National Analysis Centre for Coins (NACM) and international representation. Eventually DNB will also become responsible for the tender procedures for euro coins production.
20 November 2016 - Supervision
FSB publishes an updated list of G-SIBs and G-SIIs
The Financial Stability Board (FSB) issues an updated list of global systemically important banks ( G-SIBs ) and insurers ( G-SIIs ). As in 2016, ING Bank and insurer Aegon are on the list. Global systemically important institutions are subject to stricter requirements. For example, banks must hold additional capital.
18 November 2016 - Supervision
DNB reports on the financial position of pension funds
State Secretary of Social Affairs and Employment Jetta Klijnsma receives a DNB report on the financial position of pension funds . It is a follow-up to the 20 May report . Besides offering an outlook to 2017, at Ms Klijnsma's request, it calculates the consequences of extending the recovery period for pension funds.
17 November 2016 - Financial sector
Second ABN AMRO tranche brings in more than EUR 1.3 billion
Almost a year after ABN AMRO's IPO, the Dutch State sells a second tranche of 65 million depositary receipts for shares. This transaction, covering 7% of all shares, reduces the Dutch State's holding to 70%. At a price of EUR 20.40, the depositary receipts yield almost 15% more introduction price.
09 November 2016 - Financial sector
Election of Donald Trump boosts stock markets
Following the election of Donald Trump as President of the United States, the stock markets first tumble and then quickly recover. US financial shares in particular surge in the week after the elections in the hope of a steeper yield curve and deregulation under Trump.
17 October 2016 - Financial sector
SNS Bank successfully re-enters the covered bonds market
With an issue worth EUR 500 million, SNS Bank re-enters the primary market for covered bonds for the first time since 2012. The bonds have a AAA rating, a 15-year maturity and a portfolio of Dutch mortgage loans as collateral.
07 October 2016 - Europe
Pound sterling drops 6% in flash crash
The pound sterling falls steeply during a flash crash on the Asian markets. In just two minutes, it drops a staggering 6.3% against the US dollar before recovering again.
06 October 2016 - Payments
DNB decides to relocate its gold vault and banknote activities
DNB announces the relocation of its banknote activities and gold stocks to a new Cash Centre, which is to be built on the military site Camp New Amsterdam in Zeist. The new location will meet the strictest security requirements for gold storage and cash processing. The decision was prompted by the increasingly negative impact of the stringent security measures on the accessibility of DNB's head office and security transports in the Amsterdam city centre.
05 October 2016 - Europe
Bank bonds with statutory subordination eligible as collateral for the time being
The ECB has decided to accept statutory subordinated bank bonds as collateral for refinancing operations for the time being. This means that unsecured bonds from German banks that are legally bail-inable from 1 January 2017 and therefore descend in the creditor hierarchy, remain eligible as collateral.
30 September 2016 - Payments
Merger of Equens and Worldline completed
The merger between Worldline, a French provider of payment and transaction services, and Equens has been completed. As a clearing house for credit transfers and direct debits and a link between payment terminals in shops and banks, Equens is essential for the Dutch retail payment system. The merger means that Worldline acquires a majority holding in Equens, which will take over payment transaction activities from Worldline. The new company will continue under the name of equensWorldline, and be subject to supervision by DNB.
30 September 2016 - Supervision
Fourth Council Directive on the prevention of money laundering tightened
The European Parliament has tightened the Council Directive on the prevention of money laundering , partly in response to the terrorist attacks in Paris and Brussels. The Dutch Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft) will be amended accordingly.
28 September 2016 - Financial sector
The future of SNS Bank
The Dutch Minister of Finance, Jeroen Dijsselbloem, announces that, as of next year, SNS Bank will continue operations under the name of Volksbank, and that it has been agreed with the European Commission that in due course the bank will return to private hands. In addition, the sale of Propertize, the former real estate arm of SNS Reaal, to the consortium of Lone Star Funds and J.P. Morgan Securities has been concluded. The selling price is EUR 895.3 million, and the buyers will also redeem all outstanding debts with a state guarantee, totalling EUR 2.35 billion.
28 September 2016 - Financial sector
Share price of Deutsche Bank reaches all time low
Speculations about the financial resilience of Deutsche Bank following an imminent settlement with the American Department of Justice in the wake of malpractices with mortgage bonds prior to 2008 lead to a halving of the share price of Deutsche Bank, the lowest. Some recovery takes place in the following days.
27 September 2016 - Financial sector
DNB publishes study on return on equity of large Dutch banks
DNB has conducted a study on the return on equity (RoE) of the three large Dutch banks. The study presents a number of scenarios that combine the potentially stricter capital requirements with other factors that may affect profits, such as cost reductions. The scenarios aim to estimate the RoEs for banks in the longer term. An important conclusion is that banks are structurally less profitable than before the crisis, so that double-digit ROE targets are no longer a certainty.
21 September 2016 - Europe
Eurosystem investigates improvements to market infrastructure
As part of Vision 2020, the Eurosystem seeks to further improve its market infrastructure. In this context, it announces investigations into (i) the consolidation of Target2 and Target2-Securities, (ii) the feasibility of instant settlement to facilitate instant payments throughout Europe and (iii) a joint collateral management system for all central banks in the euro area. These investigations must provide clarity about the scope and economic feasibility of the three projects.
21 September 2016 - Economy
House prices surge
Statistics Netherlands announces that in August 2016 owner-occupied houses were 6% more expensive than in the same month a year earlier. This is the largest increase in 14 years . Residential property prices have risen since June 2013.
14 September 2016 - Economy
Round table conversation with the Dutch Lower House about the labour income ratio and wage development
At the invitation of the Standing Committee for Social Affairs and Employment, DNB takes part in a round table session about the labour income ratio and wage development. The session followed on DNB's bulletin of 28 April 2016 , which proposed an alternative definition of the labour income ratio.
12 September 2016 - Payments
Euroclear linked up to T2S
Euroclear is linked up to TARGET2-Securities (T2S). Euroclear is a group of central securities depositories, operating in the Netherlands, France, Belgium and other countries. T2S is the integrated securities platform of the Eurosystem, on which all transactions – both domestic and cross-border – are settled in central bank money. T2S marks an initial step towards the capital market union as envisaged by the European Commission for 2019.
03 September 2016 - Supervision
Publication of the Delegated Regulation on MREL
The European Commission publishes the Delegated Regulation on minimum required own funds and eligible liabilities (MREL). It prescribes the methodology for determining the loss absorbing capacity of banks. This is an important step for determining the minimum requirements for the bail-inable debt.
01 September 2016 - Pensions
Defined Contribution Scheme (Improvements) Act takes effect
This act introduces a new pension type, a variable pension. The capital that is built up in this scheme does not have to be converted into a fixed benefit on the pension date, but may continue to be invested, partly or in whole, as risk-bearing capital during the pay-out phase. Continued investment is expected to lead to a higher pension yield than a traditional fixed benefit, but at the same time leads to more uncertainty about the amount of the benefit.
17 August 2016 - Financial sector
Settlement in EURIBOR fraud
Four Rabobank employees who were involved in EURIBOR rate manipulation agree on a settlement with the securities sector self-regulation body Dutch Securities Institute (DSI). They will be paying fines of up to EUR 3,000.
04 August 2016 - Europe
Bank of England cuts interest rate for the first time in seven years
On 4 August, the Bank of England (BoE) for the first time in seven years cuts the interest rate, to 0.25%. Its Term Funding Scheme aims to ensure that the interest rate reduction feeds through to the real economy. The QE programme is expanded to GBP 435 billion and, like the ECB, the BoE will start purchasing corporate bonds. The central bank introduces the extensive package in a bid to mitigate the economic impact of the Brexit referendum.
29 July 2016 - Supervision
European stress test for banks
The European Banking Authority (EBA) publishes the outcome of a stress test for European banks. The results show that the four participating Dutch banks are quite capable of weathering anadverse scenario. The Italian bank Monte dei Paschi di Siena, which is the oldest bank in the world, emerges from the test as the worst performer, with its core capital dipping into the red in the crisis scenario.
21 July 2016 - Supervision
DNB President Klaas Knot appointed chairman of FSB-SCAV
Klaas Knot is appointed as the new Chair of the Standing Committee on Assessment of Vulnerabilities (SCAV) of the Financial Stability Board (FSB). The standing committee is responsible for risk identification, provides input for the six-monthly early warning exercise of the IMF and the FSB, and makes proposals for new policy.
13 July 2016 - Economy
Legislative proposal on the recovery and resolution of insurers
The Ministry of Finance publishes a legislative proposal for the recovery and resolution of insurers . The proposal includes instruments and powers to ensure the orderly resolution of insurers where needed and to provide maximum safeguards for policyholders.
08 July 2016 - Economy
Collection of first SRB premiums for SRF completed
2016 is the first year that the Single Resolution Board (SRB) sets the premiums for the Single Resolution Fund (SRF). DNB has collected these premiums, more than EUR 500 million, on behalf of the SRB, from the 54 authorised institutions in the Netherlands that fall under the SRF.
06 July 2016 - Financial sector
Interest on Dutch ten-year bonds at lowest point in 500 years
Investors resort to safe government bonds. As a consequence, for the first time in history the effective return on Dutch ten-year government bonds is negative. This means that investors will have to pay extra money for the bonds at the maturity date. The interest rates on German government bonds have also gone down sharply.
05 July 2016 - Payments
ECB unveils new €50 banknote
The ECB unveils the €50 banknote in the new series of banknotes. The banknote will enter into circulation on 4 April 2017 and has new and enhanced security features, such as a portrait window and an emerald number.
29 June 2016 - Europe
ECB starts accepting Greek government bonds again
As of 29 June, Greek government bonds can be used again for refinancing operations at the ECB. This reduces Greek banks' dependence on the emergency liquidity assistance by the Greek central bank.
23 June 2016 - Europe
British voters choose Brexit
The Brexit camp wins the British referendum with 52% of the votes. Initially, the markets respond negatively; the pound sterling loses 7% against the dollar and tumbles to its lowest point in 30 years. Bank shares also take a plunge. Besides shares of British banks, those of Italian and Spanish financial institutions also plunge by more than 20%. Within a week, however, the British stock market indexreturns to its pre-referendum level.
22 June 2016 - Europe
ECB starts second round of targeted longer-term refinancing operations
The ECB opens a desk for the first of four new targeted longer-term refinancing operations (TLTRO-II). The purpose of the programme is to support lending to the real economy. Under TLTRO-II, banks can borrow a collateralised amount of up to 30% of their credit portfolio for a period of four years. A new element compared with the first round (TLTRO-I) is that banks can now do so at negative interest rates, provided they achieve a credit growth benchmark.
17 June 2016 - Supervision
First authorisation for general pension fund
DNB issues the first authorisation for a general pension fund (APF).
14 June 2016 - Supervision
14 June: IMF launches Financial Sector Assessment Program
In the context of the Financial Sector Assessment Program (FSAP), an IMF delegation arrives for a first visit. Every five years, the FSAP examines Dutch supervision of the financial sector and the stability of the financial system. The delegation holds talks with DNB, the AFM, the Ministry of Finance, supervised institutions, credit rating agencies and consultants.
09 June 2016 - Supervision
Launch of InnovationHub
DNB and the AFM launch a joint InnovationHub , which existing and new innovative market professionals in the financial sector can turn to with queries on financial innovations and their regulatory treatment.
08 June 2016 - Europe
Eurosystem implements CSPP
On 8 June, the Eurosystem starts the corporate sector purchase programme (CSPP). The central banks of Belgium, Germany, Spain, France, Italy and Finland conduct the purchases of corporate bonds on behalf of the Eurosystem.
02 June 2016 - Economy
Solid recovery of Dutch economy under its own steam
In its six-monthly estimate, DNB reports that the Dutch economy is recovering at a solid pace, with domestic spending being the main driver of growth. In 2016, the estimated economic growth temporarily drops slightly to 1.5%, but is expected to pick up again and reach 1.9% in 2017 and 2.0% in 2018. The sustained growth is also visible in the labour market; unemployment declines from 6.9% of the working population in 2015 to 5.7% in 2018.
31 May 2016 - Economy
Launch of public consultation on application of bail-in tool
DNB, as the national resolution authority, has been given a number of tools to ensure continuation of a bank's critical functions following resolution. The bail-in tool, for instance, can be used to have the shareholders and creditors of a failing bank absorb the losses, and to recapitalise the bank. In a public consultation round, DNB asks stakeholders to give their views on the bail-in tool.
18 May 2016 - Supervision
External assessment committee for the screening process
DNB and the AFM appoint an external committee , headed by Annetje Ottow, to assess their director screening processes and the improvements they have made to them over the past few years.
04 May 2016 - Payments
ECB ends the production and issuance of €500 banknote
The ECB announces that it will discontinue production of the €500 banknote and that it will not include the €500 banknote in the new series of banknotes. This serves to reduce concerns that the banknote is used to facilitate illegal activities. The issuance of the €500 banknote will stop around the end of 2018. It will remain legal tender and retain its value.
26 April 2016 - Pensions
DNB wins appeal case on pension fund's gold investments
In an appeal case, the Trade and Industry Appeals Tribunal rejects the claim for damages made by Pensioenfonds Vereenigde Glasfabrieken. DNB does not have to pay damages in compensation for the consequences of its decision to instruct the pension fund to substantially reduce its investments in gold.
22 April 2016 - Economy
Informal Ecofin discusses sustainable finance
The informal Ecofin meeting of European ministers of Finance and Economic Affairs takes place at the Dutch National Maritime Museum in Amsterdam. DNB President Klaas Knot heads the discussion about the financial sector's contribution to the transition towards sustainable energy supply.
15 April 2016 - Financial sector
ING sells remaining holding in Nationale Nederlanden
ING sells its remaining holding of 14.1% in Nationale Nederlanden (NN) for approximately EUR 1.4 billion. The bank uses the proceeds to strengthen its capital position. The European Commission forced ING to sell NN because of the state support it had received in 2008 and 2009.
04 April 2016 - Financial sector
DNB more transparent about purchase programme
As of this date, DNB makes known the prices at which it has acquired bonds in the DNB auctions as part of the QE programme. The total volumes per auction are also published. The aim is to increase the transparency and effectiveness of the bond auctions.
04 April 2016 - Financial sector
Publication of Panama Papers
The publication of the Panama Papers spotlights worldwide illegal financial flows and money laundering and exposes the business services providers that facilitate them.
01 April 2016 - Supervision
Legal protection of derivatives owners
A new element in the Securities Giro Act (Wet giraal effectenverkeer) offers derivatives holders protection against the bankruptcy of intermediaries, such as banks, investment firms and clearing institutions. The derivatives positions an intermediary enters into with a third party for its customers are separated from the other assets of the intermediary. DNB and the AFM supervise compliance with this by banks and clearing institutions, and investment firms respectively.
10 March 2016 - Europe
ECB eases monetary policy further
The ECB announces further accommodating measures, against the backcloth of ongoing low inflation. In addition to cutting its policy rates, the ECB lifts its monthly purchases under the financial asset purchase programme to EUR 80 billion. It also announces that bonds issued by non-financial institutions will be added to the list of assets eligible for purchase. And finally, in June 2016, a second set of targeted longer-term refinancing operations (TLTRO II) will be launched.
10 March 2016 - Financial sector
Launch of Sustainable Finance Platform
DNB joins forces with the financial sector, governments and supervisory authorities in the Sustainable Finance Platform, to put sustainable finance more firmly on the agenda in the financial sector and to promote knowledge sharing.
04 March 2016 - Financial sector
DNB publishes study on energy transition
DNB publishes its study: ‘Time for Transition – towards a carbon-neutral economy." This study regards energy transition as one of the economy's key long-term challenges. DNB advocates a long-term policy ensuring a well-timed and controlled transition. This demands greater emphasis on emission reduction, which requires adequate pricing of carbon. DNB also presses for increasing the transparency of climate risks, enabling financial institutions to anticipate better on these risks.
22 February 2016 - Economy
Largest depreciation of sterling in seven years
Sterling depreciates over 1.9% against the US dollar, the largest single-day price loss day since October 2009. Starting at the opening of business, the slide is prompted by the news of London Mayor Boris Johnson announcing that he will campaign for Brexit. Following the agreement between David Cameron and the European leaders several days before, sterling gains considerable ground, which gains evaporate on the news of Boris Johnson's decision. So far, the concerns about Brexit seem to be manifesting themselves mainly on the foreign exchange markets.
12 February 2016 - Financial sector
DNB opens Whistleblowing Desk
People working in the financial sector can now report serious breaches of laws and regulations (or their suspicions thereof) to DNB's Whistleblowing Desk.
10 February 2016 - Financial sector
European bank shares start the year on a low note
By mid-February, European bank shares on average quote 28% below the levels seen at the start of the year. This is 16% for the broader European share index. Prices of convertible bonds fell in line with bank shares. Market analysts blame the slump on the concern over mature economies slowing down, the pressure on interest margins due to the low interest environment, and the relatively high numbers of non-performing loans with southern European banks. Investors are also worried that the increasing capital requirements and the raising of risk weights are hampering banks in paying out dividends and coupons.
04 February 2016 - Economy
DNB launches website on financial stability duty
The new web pages use up-to-date information and indicators to show which systemic risks are important and which policy instruments DNB uses. The six-monthly Overview of Financial Stabilityand other publications can be found on these pages.
13 January 2016 - Payments
EU Payment Services Directive comes into force
The revised EU Payment Services Directive PSD2 comes into force. PSD2 is the legal foundation of the European retail payments system. It regulates supervision of payment institutions, the information and transparency requirements governing them, and the rights and obligations of providers and users of retail payment services. PSD2 objectives include underpinning the European payments market by facilitating competition while keeping a level playing field and protecting consumers. The Netherlands is required to implement the Directive within two years of its effective date.
01 January 2016 - Europe
The Netherlands embarks on its Presidency of the European Union
From 1 January to 30 June 2016, the Netherlands holds the Presidency of the Council of the European Union. The priorities are; a strategic agenda for the EU in times of change, focusing on growth and jobs through innovation, and connecting with civil society. Negotiations on a European deposit guarantee scheme will also be launched under the Dutch Presidency.
01 January 2016 - Supervision
SRB fully competent for resolution
Effective from 1 January, the Single Resolution Board (SRB) is fully competent for the resolution of banks and certain investment firms in the euro area.
28 December 2015 - Payments
DNB aligns systemic importance framework with new EU standards
The modified framework gives rise to one change, compared with last year's outcome. BNG Bank is added as a systemically important bank. The outcome for the other banks remains unchanged: ING Bank, Rabobank, ABN AMRO and SNS Bank remain classified as systemically important. The five systemically important banks must maintain additional capital buffers enabling them to better absorb unexpected losses.
24 December 2015 - Pensions
Bill on general pension fund adopted
From 1 January 2016, parties can apply for authorisation of a general pension fund (Algemeen Pensioenfonds – APF) with DNB. DNB's Open Book on Supervision website has more information on the application process.
21 December 2015 - Payments
Regulation on oversight of the smooth operation of the payment system published in the Government Gazette
Further to the amendment of Section 3:17 of the Financial Supervision Act (see 1 January), the Regulation imposes availability standards on retail payments in the Netherlands. The Regulation applies to institutions processing more than 60 million transactions annually. DNB is responsible for supervising its implementation.
18 December 2015 - Supervision
DNB introduces countercyclical capital buffer effective from 2016
Starting in 2016, DNB will determine the countercyclical capital buffer (CCyB) for the Netherlands on a quarterly basis. The countercyclical capital buffer (CCyB) is a macroprudential instrument to protect banks against risks ensuing from the financial cycle. It is a variable add-on to the minimum capital requirements of up to 2.5% of risk-weighted assets, or higher if necessary. Excess aggregate credit growth is a key indicator for applying the CCyB. Credit growth is currently very low, and other indicators (such as residential property and commercial real estate prices) also show moderate development. DNB therefore sets the CCyB at O% from 1 January 2016.
16 December 2015 - Economy
FED raises interest rates
The FED raises its interest rates for the first time in nine years, by 0.25% and intends a further incremental raise in 2017. The market response is tentatively positive.
07 December 2015 - Economy
Dutch economy shows solid growth
DNB's half-yearly projections indicate that the Dutch economy is in a catch-up phase. Economic growth is projected to end up at 1.9% in 2015. In 2016, growth is expected to dip slightly to 1.7%, to rebound to 2.2% in 2017. The Dutch economy is increasingly growing under its own steam. A slightly lower growth contribution of exports is offset by a higher contribution of domestic spending. Domestic spending is underpinned by the surprisingly quick recovery of the housing market and the increasing purchasing power of households. Unemployment is falling at a slower pace than after earlier recessions. Inflation is set to remain low and will only pass the 1% mark in 2017.
04 December 2015 - Payments
DSB Bank account holders reimbursed
The receivers of DSB Bank announce that almost all creditors will be fully reimbursed. DSB collapsed in 2009. Most customers had already been reimbursed about three quarters of their deposits. Now the final quarter, totalling approximately EUR 90 million, will also be paid out. DSB's customers have had to waive their claims to interest and other rights on DSB, however.
03 December 2015 - Europe
ECB lowers its deposit rate and extends quantitative easing programme
The ECB decides to lower its deposit facility rate to -0.3%. The interest rates on the main refinancing operations and the marginal lending facility remain unchanged. The ECB extends its quantitative easing programme by six months, at least until the end of March 2017. It also adds debt securities of regional and local governments to the list of purchasable bonds and intends to reinvest the principals of previously purchased maturing bonds. These measures are aimed at getting inflation back to the 2% target, in line with the ECB´s price stability objective.
01 December 2015 - Economy
DNB completes transitional resolution plans for three large banks
At the Single Resolution Board's request, DNB drafted these transitional resolution plans to bridge the plans that it drew up for these banks of its own accord at the start of the year, and the plans that will fully comply with the SRM Regulation and the BRRD. The transitional resolution plans describe the operational, legal and financial framework and resolution strategy for each of the three banks, as well as the instruments to be implemented in case of resolution.
30 November 2015 - Europe
Sufficient number of member states ratify the intergovernmental agreement on the establishment of the SRF
Ratification by a sufficient number of member States is a precondition for enabling the establishment of the SRF on 1 January 2016 and to grant the Single Resolution Board (SRB) the power to impose resolution instruments as of that date. The agreement covers the transfer of the member states' national resolution funds to the SRF. The Netherlands formally ratifies the agreement on 10 November.
30 November 2015 - Europe
IMF includes Chinese renminbi in its currency basket
Effective from 1 October 2016, the currency basket used to determine the value of the IMF's Special Drawing Rights will be expanded to include the Chinese renminbi as its fifth currency. The value of the Special Drawing Rights currency basket is now still based on the US dollar, the euro, sterling, and the Japanese yen. With a weight of around10%, the renminbi will be the third largest currency in the basket, after the US dollar and the euro.
27 November 2015 - Supervision
Banks and investment firms receive their first invoice for national resolution fund
The aim of the national resolution fund is to facilitate effective implementation of the resolution framework. In 2015, a total of EUR 453 million was contributed to the fund in order to achieve the target amount of EUR 4.5 billion in 2024. In 2016, a part of this fund will be transferred to the European Single Resolution Fund (SRF) in Brussels.
26 November 2015 - Supervision
BRRD enters into effect in the Netherlands
With the publication of the Act amending the Financial Supervision Act (Wet tot wijziging van de Wft) and other regulations the transposition of the Bank Recovery and Resolution Directive (BRRD) into Dutch law is now completed. As the resolution authority, DNB now has the power to draw up resolution plans, to remove impediments to resolvability, to implement resolution instruments and to manage the resolution fund.
26 November 2015 - Europe
Implementation of European DGS Directive
The Netherlands launches a new, pre-funded Deposit Guarantee Scheme (DGS), as part of the implementation of the European DGS Directive. DNB is responsible for the implementation of the new scheme. Under the new regime, financial institutions will be contributing in advance to the new DGS fund, with the amount of an individual bank’s contribution depending on its risk profile. DNB can activate the DGS fund in the event of a bank failure.
25 November 2015 - Payments
Launch of new EUR 20 banknote
The new EUR 20 banknote is brought into circulation. Following the new EUR 5 and EUR 10 notes, this is the third banknote in the Europa series. The new banknotes have enhanced security features, offering better protection against counterfeiting. New to this banknote is the transparent window in the hologram, showing a portrait of princess Europa.
24 November 2015 - Europe
European Commission issues proposal for European deposit insurance scheme
The European Commission proposes a gradual transition from the various national deposit guarantee schemes to a European deposit insurance scheme (EDIS). It also publishes an announcement on the completion of the banking union, listing a number of risk-reducing measures for the banking union the Commission intends to elaborate further in parallel to its EDIS proposal.
20 November 2015 - Financial sector
ABN AMRO IPO
The Dutch State sells about 20% of the bank that was nationalised in 2008 and raises EUR 3.3 billion. ABN AMRO's total valuation now stands at EUR 16.7 billion.
19 November 2015 - Economy
The Netherlands regains triple-A status
S&P re-awards the Netherlands its triple-A credit rating. It is the first time a country regains a triple-A rating from S&P. Fitch and Moody's reaffirm their triple-A rating for the Netherlands.
10 November 2015 - Europe
IMF urges the Netherlands to implement structural reforms
In its annual Article IV Mission into the state of the Dutch economy, the IMF presses for further structural reforms of the tax system, the pensions system, the housing market and the labour market. The tax system favours debt and has contributed to overly-leveraged households and businesses, which makes the Dutch economy vulnerable to downward shocks. The IMF proposes taking measures such as reducing mortgage interest tax relief and the LTV limit for mortgage loans, promoting neutral fiscal treatment of equity capital and borrowed capital, further liberalisation of the rental market and reducing the tax on labour.
09 November 2015 - Financial sector
Raad voor Financiële Stabiliteit rondt minimumstandaard af voor verliesabsorptiecapaciteit voor banken die wereldwijd van systeembelang zijn
The total loss-absorbing capacity (TLAC) standard for banks defines a minimum requirement for the instruments and liabilities that should be readily available for bail-in. The TLAC minimum standard also provides guidelines for the types of instruments eligible for TLAC and the internal distribution of these instruments within global systemically important banks (G-SIBs).
03 November 2015 - Payments
Worldline and Equens join forces
French-based Worldline, European market leader in payment and transaction services, and Dutch interbank payment processor Equens sign a Memorandum of Understanding with the aim of creating a new pan-European payment services company. Worldline and Equens consider this to be a milestone in the consolidation of the European payments market.
03 November 2015 - Supervision
The Financial Stability Board (FSB) designates Aegon as a global systemically important insurance company
This designation is a macroprudential measure with the aim of strengthening the soundness of the financial system as a whole.
14 October 2015 - Europe
Eurosystem announces Vision 2020
The Eurosystem publishes its medium term vision of the systems for payments and securities transactions and collateral management. Its aim is to reduce costs and consolidate TARGET2 and TARGET2-Securities. It also launches a study into improving the possibilities for settlement in central bank money to enable 24/7 retail payments. In addition, the Eurosystem continues to pursue harmonisation of collateral management and to explore the feasibility of a shared system in the context of the European capital markets union project.
30 September 2015 - Europe
European Commission launches action plan for capital markets union
The European Commission is intent on boosting the European capital market by facilitating the emergence of alternatives to bank funding and simplifying smaller firms' access to the capital market. Its Action Plan on Building a Capital Markets Union’ announces several concrete steps to be taken in 2016. More information.
21 September 2015 - Europe
The Netherlands reaches a settlement with Iceland for EUR 48 million, finally closing this file after seven years. In addition, DNB receives some EUR 12 million from an account with the Central Bank of Iceland that was blocked as a result of the capital restrictions.
17 September 2015 - Financial sector
DNB publishes figures of individual pension funds
DNB has started publishing key figures of individual pension funds. From now on, everyone can simply access the key figures of their own pension fund, such as its policy funding ratio, contribution amount and indexation percentage. More information
11 September 2015 - Financial sector
DELFI tool launched
DNB makes an application available on its website that allows users to prepare simulations for the Dutch economy, based on the DELFI macro model. The simulations show the macroeconomic impact of 11 different national and international developments and policy measures, from which the user can choose.
24 August 2015 - Financial sector
Concerns over China send global stock markets into the red
Stock exchanges across the world plummet on the back of the renminbi's devaluation and related concerns over an economic slowdown in China. Chinese stock markets were severely depressed earlier this summer, following explosive rises in the first half of the year. The Chinese authorities took various measures to contain the downward slide of the stock exchanges, such as a ban on short selling, but to no avail.
14 August 2015 - Europe
Greece and creditors reach agreement on bail-out terms
The Eurogroup agrees on a new support programme for Greece worth EUR 86 billion, including the conditions that the country must meet. The three-year programme under the European Stability Mechanism (ESM) imposes measures relating to government finances, economic growth and financial stability. A maximum buffer of EUR 25 billion is set aside to recapitalise Greek banks.
31 July 2015 - Financial sector
District court upholds fine imposed on Delta Lloyd
The Rotterdamse district court upholds the fine that DNB imposed on Delta Lloyd. DNB imposed the fine after Delta Lloyd had carried out transactions on the basis of confidential information in breach of the rules relating to sound and ethical operational management. More information
20 July 2015 - Europe
Greece repays arrears to the IMF
Greece repays the totality of its arrears to the IMF and the Bank of Greece as well as the bonds held by the Eurosystem. To do so, it receives a bridging loan from the other EU Member States through the EFSM worth EUR 7.2 billion and a maturity of no more than three months.
15 July 2015 - Pensions
DNB adjusts UFR method for pension funds
DNB adopts a new method for calculating the ultimate forward rate (UFR) for pension funds, in line with the UFR Committee's advice from 2013.. The new UFR calculation method better takes into account actual market rate developments, making for a more realistic actuarial interest rate for pension funds to calculate the value of future liabilities. The UFR consequently falls to 3.3% from 4.2%.
14 July 2015 - Europe
Dijsselbloem re-elected as Eurogroup president
Jeroen Dijsselbloem is reappointed for 2.5 years, defeating the only opposing candidate,Luis de Guindos. Eurogroup members have praised Dijsselbloem for his approach to the Greek debt crisis.
06 July 2015 - Europe
Haircut on collateral for ELA adjusted
The ECB decides to adjust the haircuts on collateral accepted by the Bank of Greece for emergency liquidity assistance (ELA). The worsened financial situation of the Greek government has an impact on Greek banks since the collateral they use in ELA relies to a significant extent on government-linked assets. See the ECB's press release for more information.
06 July 2015 - Financial sector
Sale of SNS Reaal completed
The Dutch State sells SNS Reaal to Chinese insurance group Anbang for EUR 150 million. The Chinese insurance supervisor gives the green light for the purchase. DNB gave its blessing in early July. The Chinese go-ahead makes the sale of SNS Reaal to Anbang final. At the same time, SNS Reaal changes its name to Vivat.
03 July 2015 - Europe
EBA completes ITS for resolution, including MREL
The EBA has submitted its implementing technical standards (ITS) for resolution authorities to the European Commission (EC) for publication. Once published, the standards are binding for the Member States. The minimum requirement for own funds and eligible liabilities (MREL) forms a key element of these ITS.
30 June 2015 - Europe
Greece misses IMF repayment deadline
Greece does not repay the IMF loans expiring on 30 June, which total almost EUR 1.6 billion. This means it is formally in default with the IMF. The bail-out programme for Greece also expires on the same day. As a result, funds still available under the programme are blocked in principle.
28 June 2015 - Europe
ECB maintains emergency liquidity assistance at 26 June level
The ECB's Governing Council takes note of the fact that the EU's bail-out programme for Greece is to be discontinued and decides to maintain emergency liquidity assistance (ELA) to Greek banks at the level of Friday 26 June. That same weekend, the Greek government decides to impose a period of bank closures and capital controls.
24 June 2015 - Economy
Lower House approves proposed IPO of ABN AMRO
A clear majority in the Lower House of Dutch Parliament approves the proposed IPO of ABN AMRO. Finance Minister Jeroen Dijsselbloem hopes to float the first tranche of shares this year.
23 June 2015 - Supervision
Act Implementing the Omnibus II Directive adopted
The Act contains transitional measures for the new Solvency II insurance supervision framework and provisions on the role of European supervisory authority EIOPA and regulates the treatment of long-term products provided by insurance companies.
16 June 2015 - Europe
Court of Justice confirms: OMT compatible with EU law
The Court of Justice of the European Union rules that the programme of outright monetary transactions (OMT) is compatible with EU law. The ECB announced the programme in 2012 to safeguard the "singleness" of monetary policy. The Court in its ruling confirms that the programme is covered by the mandate of the ECB to maintain price stability in the euro area.
08 June 2015 - Economy
DNB projections: economic growth picks up speed
DNB's half-yearly projections indicate that the Dutch economy is set to switch into higher gear. On the back of a pick-up in domestic demand, the economy is to gain steam in 2015, with growth projected at 2%. This is the highest growth figure recorded since 2008. The same growth rates are on average envisaged for 2016 and 2017. This means economic activity will develop more favourably than previously projected. In line with this more upbeat outlook, unemployment will fall, government finances will improve and inflation will edge up. More information.
28 May 2015 - Economy
FSC issues first formal advice: reduce LTV to 90%
The Financial Stability Committee (FSC) advises future Cabinets to continue the gradual reduction of the loan-to-value (LTV) limit for mortgage loans by one percentage point per year after 2018 to achieve a level of 90%. It believes the exceptionally high LTV ratios and mortgage debts in the Netherlands warrant further gradual reduction of the maximum ratio of the size of the loan to the value of the home, as they pose a threat to financial stability. DNB publishes a study into the consequences of a lower LTV limit, which reveals that the macro-economic costs are limited and will manifest themselves mostly during the transition phase.
20 May 2015 - Economy
Fitch lowers credit ratings for Dutch banks
Rating agency Fitch lowers its credit ratings for twenty European banks by one notch. Among them are the Dutch large banks. The cut is prompted by the introduction of the European Bank Recovery and Resolution Directive, which enables banks to be bailed in by senior bond holders.
07 May 2015 - Europe
German bond yields fluctuate sharply
Concerns about financial market liquidity peak when yields on German ten-year government bonds fluctuate by 17 basis points, extreme volatility on a single day. In the following weeks, Bund yields climb to 80 basis points, settling at that level. Before 7 May, German ten-year yields had bottomed at five basis points.
29 April 2015 - Supervision
DNB not liable for damage or loss caused by DSB Bank's bankruptcy
The liquidators of DSB Bank and a number of special-interest groups brought liability proceedings against DNB. The court rules that DNB did not act unlawfully in its capacity of supervisory authority, meaning that it is not liable for damage or loss caused by DSB Bank's bankruptcy. Read more
28 April 2015 - Supervision
Act on the Supervision of Credit Unions adopted
The Upper House of the Dutch Parliament adopts the private member's Act regulating the supervision of credit unions. The Act on the Supervision of Credit Unions (Wet toezicht kredietunies) establishes the conditions under which credit unions may be set up and operate in the Netherlands.
02 April 2015 - Supervision
ECB launches securities lending programme
Effective 2 April, the ECB and a number of national central banks including DNB make the bonds purchased under the public sector purchase programme (PSPP) available for securities lending. The central banks of the other euro area countries join later. The purpose of the securities lending programme (SLP) is to support liquidity in the fixed-income and repo markets. In return, the ECB and the central banks receive more marketable bonds rather than cash in order not to affect total excess liquidity in the euro area.
25 March 2015 - Financial sector
Single Resolution Board (SRB) holds inaugural Plenary Meeting
The Plenary Meeting is the highest decision-making body within the Single Resolution Mechanism (SRM). It is attended by representatives of all national resolution authorities in the SRM territory, including DNB, and by the SRB’s Board.
19 March 2015 - Financial sector
Participation in third targeted longer-term refinancing operation (TLTRO) exceeds market expectations
The aim of the TLTRO programme is to encourage banks to extend loans to businesses and households. 143 European banks take up EUR 97.8 billion in the third TLTRO, well ahead of the average EUR 40 billion market expectation. This brings participation in the first three TLTROs to EUR 310 billion in total.
10 March 2015 - Europe
European Systemic Risk Board (ESRB) publishes report on regulatory treatment of sovereign exposures
The report aims to put a stop to the current preferential regulatory treatment of sovereign exposures in the books of banks and insurers. The preferential treatment causes the risks inherent in sovereign exposures to be underestimated and creates a strong interdependency between banks and insurance companies on the one hand and governments on the other, jeopardising financial stability. The policy options set out in the report include introducing minimum capital requirements for sovereign exposures and discontinuing the exemption from the large-exposure rule.
05 March 2015 - Pensions
Dutch Lower House approves proposed Pensions Communications Act
The objective of the legislative proposal is to provide for adequate communications to ensure that pension scheme members know what pension to expect, can check whether that is sufficient and are aware of the risks to their pension provisions. It will also enable DNB to publish statistics on individual pension funds and it will increase the pensions register’s functionalities.
26 February 2015 - Europe
EBA requires banks to provide additional information on securitisation transactions
The European Banking Authority (EBA) has developed Guidelines for the assessment of significant risk transfer (SRT) for securitisation transactions. DNB expects banks to apply these Guidelines to all transactions with effect from 7 July 2014 and will monitor their compliance. DNB will report to the EBA on its assessment of transactions for which originator banks apply for or claim SRT and the degree to which banks investing in securitisations comply with the due diligence requirements.
24 February 2015 - Europe
Eurosystem unveils new €20 banknote
ECB President Draghi unveils the new €20 banknote, which will start circulating on 25 November 2015. It is the third banknote of the Europa series to be launched after the new €5 and €10. The Europa series banknotes have new and improved security features. For instance, a new feature of the €20 banknote is a hologram featuring a window that becomes transparent when held against the light, revealing a portrait of Europa, a figure from Greek mythology, on both sides.
20 February 2015 - Europe
Eurogroup extends Greek bail-out programme
The Eurogroup agrees on a four-month extension of the assistance programme for Greece. The extension allows Greece to buy time to undertake the required reforms and negotiate agreements on further support arrangements It saves the nation from getting into financial trouble almost immediately.
20 February 2015 - Economy
DNB publishes Occasional Study on wealth formation of Dutch households
Dutch households have seen a marked expansion in both their assets and debts in recent decades, partly as a result of government measures relating to pensions and housing. Government policies in these areas are not considered in conjunction with each other in most cases. Both households and the economy as a whole may benefit from a comprehensive policy on wealth accumulation with fewer distortionary tax incentives.
18 February 2015 - Europe
European Commission presents plans for capital markets union
The European Commission seeks to give the European capital market a strong boost. Removing impediments to non-bank lending will attract investment from the EU and from the rest of the world and will make the financial system more stable by opening up a wider range of funding sources. The European Commission’s Green Paper ‘Building a Capital Markets Union’ unfolds the plans for the creation of a comprehensive capital markets union (CMU).
07 February 2015 - Supervision
Act on Remuneration Policies of Financial Undertakings enters into force
The key elements of the new Act are a 20% bonus cap and new provisions for severance pay, retention fees and variable remuneration in case of state support for all financial institutions except pension funds.
04 February 2015 - Europe
Greek debt instruments no longer eligible as collateral
The ECB decides to lift the waiver of minimum credit rating requirements for marketable debt instruments issued or guaranteed by the Hellenic Republic, as it is no longer possible to assume a successful conclusion of the latest support programme review. The waiver allowed these instruments to be used as collateral in Eurosystem monetary policy operations despite the fact that they did not fulfil minimum credit rating requirements ( ECB press release ).
31 January 2015 - Payments
Discontinuation of national payment infrastructure
Following the migration to European standards for credit transfers and direct debits within the framework of the single euro payments area (SEPA) on 1 August 2014, the final curtain also falls on the processing of other Dutch payments, including Chipknip electronic purse payments. The discontinuation of the national payment infrastructure marks the end of nearly a century of Dutch non-cash payments .
22 January 2015 - Europe
ECB announces government bond purchase programme
The ECB announces that in March it will start purchasing bonds issued by governments in the euro area and by European institutions, expanding the current purchase programmes for asset-backed securities and covered bonds. The aim is to purchase assets worth EUR 60 billion every month. The programmes are intended to be carried out until September 2016, in any case until the ECB sees a sustained adjustment in the path of inflation that is consistent with its objective. DNB will be purchasing an estimated EUR 2.5 billion worth of Dutch sovereign bonds every month.
01 January 2015 - Supervision
Financial Supervision Act safeguards smooth operation of the payment system
As of this date, the revised Section 3:17 of the Financial Supervision Act (Wft) stipulates that banks, payment institutions, electronic money institutions and settlement agents are subject to regulations and standards to ensure the smooth operation of the payment system. One of these regulations and standards is an availability standard for time-critical retail payment orders.
01 January 2015 - Supervision
The new Financial Assessment Framework for pension funds comes into effect
The new Financial Assessment Framework (FTK) aims to make pension contracts more transparent by ordering pension fund boards to specify their indexation policies, contribution policies, and financial crisis plans in advance. DNB welcomes the objectives of the law and regards revision of the financial assessment framework as a necessary step that contributes to the desired restoration of trust in the pension system.
01 January 2015 - Supervision
Rules governing registered covered bonds amended in the Financial Supervision Act (Wft)
Issuers of covered bonds provide additional security in the form of collateral. The amendments will lead to better statutory embedment of the high transparency and safety standards that Dutch covered bonds already meet. The revised legislation puts the Netherlands at the forefront in terms of incorporating EBA best practices, published in mid-2014, into national covered bond legislation. Institutions issuing registered covered bonds have a year to implement the new legislation. DNB will be monitoring this.
01 January 2015 - Europe
Lithuania adopts the euro
Lithuania is the nineteenth country to introduce the euro. Its accession to the euro area marks the start of the system of rotating voting rights in the Governing Council of the ECB. The ECB's website explains how voting rights will rotate in 2015 and 2016.
01 January 2015 - Europe
European Bank Recovery and Resolution Directive enters into force
The Bank Recovery and Resolution Directive (BRRD) introduces a pan-European framework for the resolution of failing banks and facilitates timely intervention. The Directive authorises and equips resolution authorities to write down capital, transfer assets, liabilities and securities, and apply a bail-in tool. It also instructs them to set up national resolution funds and collect contributions from banks and investment firms.
22 December 2014 - Financial sector
Publication of designation of DNB as the resolution authority as of 1 January 2015
Following the incorporation of the new European resolution regime into national legislation, DNB will formally become responsible for the resolution planning and execution of national small banks and a number of investment firms. In addition, DNB's Executive Director responsible for Resolution will have a seat on the Single Resolution Board (SRB) of the single resolution mechanism (SRM). In this capacity, DNB will take part in the decision-making process on policy and on the resolution planning and execution for significant banks at a European level.
17 December 2014 - Financial sector
European agreement on interbank fees for card-based payment transactions
The European Parliament and the Council of Ministers reach agreement about a Regulation on interchange fees for card-based payment transactions. The fees are maximised at 0.2% of the transaction amount for PIN and 0.3% for credit card payments. These maximums apply as of six months following the entry into force of the Regulation. In addition, the Regulation provides rules and conditions on transparency and non-competitive practices for card companies.
17 December 2014 - Financial sector
Dutch Upper House adopts Financial Financial Assessment Framework bill
The new Financial Assessment Framework (FTK) aims to make pension contracts more transparent by ordering pension fund boards to specify their indexation policies, premium policies, and financial crisis plans in advance. Distributing financial shocks more evenly will benefit the stability of the prudential framework for pension funds. DNB welcomes the objectives of the draft law: revision of the financial assessment framework is a necessary step that contributes to the desired restoration of trust in the pension system. The new FTK will come into effect on 1 January 2015.
12 December 2014 - Financial sector
DNB provides EMIR authorisation to Holland Clearing House
As the competent authority, DNB has provided authorisation to Holland Clearing House B.V. (HCH) under EMIR. HCH is a central counterparty that settles derivatives transactions for trading platform TOM. HCH's shareholders are Intercontinental Exchange Holdings and ABN AMRO Clearing Bank.
11 December 2014 - Financial sector
ECB conducts second TLTRO
306 European banks are allotted EUR 130 billion in the second targeted longer-term refinancing operations (TLTROs), a measure aimed at boosting lending to companies and households.
10 December 2014 - Financial sector
U.S. Congress rejects IMF reforms
The U.S. government again fails to have the IMF reforms as agreed in 2010 passed by Congress. As a consequence, the IMF will work out alternative plans to enhance the representativeness and effectiveness of the Fund.
08 December 2014 - Financial sector
Dutch economy grows more under its own steam
According to DNB's half-yearly estimate, the Dutch economy will grow more independently in the years ahead due to an increase in domestic expenditure. After two years of contraction, the Dutch economy is expected to grow by 0.8% in 2014. Economic growth is expected to pick up further in the years ahead, to 1.2% in 2015 and 1.5% in 2016, thanks to strongly improving consumer and producer confidence. A more pronounced growth recovery will be hampered by moderate global economic expansion. The labour market is showing resilience, although unemployment remains high. The housing market has bottomed out and is taking a turn for the better.
30 November 2014 - Financial sector
EIOPA publishes results of European stress test for insurers
The outcome of the stress test by the European Insurance and Occupational Pensions Authority (EIOPA) shows that, based on the end-2013 figures, a majority of European insurers and insurance groups would satisfy the solvency capital requirement (SCR), both before and after stress. The SCR is part of the new Solvency II supervisory framework for insurers, due to come into effect on 1 January 2016. The six largest insurers and the six largest insurance groups in the Netherlands took part in the stress test. In all scenarios, their average SCR ratios were above the minimum requirement of 100%.
25 November 2014 - Financial sector
ECB starts purchase programme for asset-backed securities
The ECB's Governing Council decided on an ABS purchase programme at the beginning of September. The ECB has hired external asset managers for the initial implementation of the programme.
24 November 2014 - Financial sector
Insurers obliged to switch to Solvency II reports
The Ministry of Finance obliges insurers to report in accordance with the Solvency II Directive as of 1 January 2015. As a result, the criterion governing applications for declarations of no-objection for the distribution of dividends (the theoretic solvency criterion – TSC) is to be replaced by the Solvency II position. Calculations based on Solvency II provide a better answer to the question as to whether an insurer is able to satisfy the solvency requirements over the next twelve months, compared with the TSC, which is why DNB considers it a further enhancement of its supervisory instruments.
21 November 2014 - Financial sector
DNB publishes new location policy for gold stock
De Nederlandsche Bank announces that it has adjusted its gold stock location policy. The redistribution of the gold holdings guarantees a more balanced spread of the gold stock over the four storage locations. Before, the distribution was 51% in New York, 11% in Amsterdam, 20% in Ottawa and 18% in London. The new location spread is: Amsterdam 31%, New York 31%, Ottawa 20% and London 18%.
13 November 2014 - Financial sector
Financial Stability Board (FSB) launches TLAC proposal
The FSB proposal aims to reduce the likelihood and impact of the collapse of too-big-to-fail banks by increasing their loss-absorbing capacity (TLAC). The proposed framework supplements the stricter Basel III capital requirements. The additional loss absorption capacity will in future enable resolution authorities to resolve banks smoothly using the bail-in-instrument. The FSB will be conducting an impact analysis in 2015 The outcome of the consultation and the impact analysis will be used to finalise the standard over the course of 2015. More information
06 November 2014 - Financial sector
European Commission sets up Directorate-General for Financial Stability, Financial Services and Capital Markets Union
On 6 November, the European Commission approved the creation of a new Directorate-General (DG) for Financial Stability, Financial Services and Capital Markets Union. The new DG will start on 1 January 2015, headed by British European Commissioner Jonathan Hill.
04 November 2014 - Financial sector
ECB gets role in the execution of macroprudential policy
With the start of European banking supervision, the ECB also gets a role in macroprudential policy, which is intended to address macrofinancial unbalances. These are often national in nature, such as excessive credit growth and too large a financial sector. This new policy domain is a shared responsibility. National macroprudential authorities should make the first move. Their tools include capital add-ons for systemically important banks, stricter requirements for mortgages and a countercyclical buffer that increases at times of excessive credit growth. The ECB may also strengthen these measures insofar as they relate to the banking sector.
29 October 2014 - Financial sector
Fed ends purchases under the quantitative easing (QE) program
The program commenced five years ago to boost the American economy after the financial crisis. In total, the Fed bought bonds to the amount of USD 4,500 billion. The US central bank will continue to reinvest the proceeds from the current purchasing program, so that the Fed's balance sheet will not shrink for the time being.
26 October 2014 - Financial sector
ECB publishes results of comprehensive assessment of European big banks
The ECB completes the comprehensive assessment (CA), which marks the start of European banking supervision. The assessment comprised an asset quality review and a forward-looking stress test. Of the 130 banks assessed 25 fail to meet the minimum requirements for core capital, with a combined capital deficit of EUR 24.6 billion at year-end 2013. Following capital issues earlier this year, a deficit of EUR 9.5 billion remains. In particular banks in Italy, Greece, Portugal and Ireland need to strengthen their core capital. The result is as expected by market parties.
26 October 2014 - Financial sector
Positive outcome for Dutch banks in ECB's comprehensive assessment
At the start of European banking supervision under the auspices of the ECB on 4 November, the large Dutch banks are in healthy condition. The seven Dutch banks that were examined – ING Bank, Rabobank, ABN AMRO Bank, SNS Bank, BNG Bank, NWB Bank and RBS NV – are all well-capitalised and also strong enough to face deteriorating economic circumstances. More information
23 October 2014 - Financial sector
IAIS publishes Basic Capital Requirement (BCR) for systemically important insurers
The BCR is a first step towards global risk-based standards for internationally active insurers. This worldwide standard will apply to groups of insurers that have been classified as systemically important by the International Association of Insurance Supervisors (IAIS). The BCR serves as a basis for a future additional capital requirement on higher loss absorbency for insurers' systemically important activities.
20 October 2014 - Financial sector
ECB starts covered bond purchase programme
Following the decision by the ECB's Governing Council on 4 September, the central banks of the Eurosystem, including DNB, have started purchasing covered bonds. In the first month, purchases total some EUR 13 billion. The purchase programmes for covered bonds and asset-backed securities (ABS) will last at least two years.
16 October 2014 - Financial sector
Dutch Lower House adopts Act on Remuneration Policies of Financial Undertakings (Wet beloningsbeleid financiële ondernemingen – Wbfo)
The key elements of the new Act are a 20% bonus cap and new provisions for severance pay, retention fees and variable remuneration in case of state support for all financial institutions except pension funds. The Dutch Upper House first has to pass the act before it will take effect.
11 October 2014 - Financial sector
IMF to explore alternatives for review of quotas
During its Annual Meeting in Washington, the IMF again establishes that no progress has been made on the implementation of the reforms of the IMF governance structure and review of quotas, despite agreement about this in 2010. If the reforms are not ratified by year-end, the IMF will stand ready with alternative options for effecting the required reforms. The IMF meeting also addresses the weak and unbalanced economic recovery, and the increased support for countries hit by Ebola.
10 October 2014 - Financial sector
European Commission publishes Solvency II Implementing Regulation
This Implementing Regulation works out many important aspects of the Solvency II framework in greater detail, including valuation principles for assets and liabilities, the composition of own funds, and capital and governance requirements. With the publication of the Implementing Regulation, the European Commission offers insurers and other market parties guidance in their preparations for Solvency II.
06 October 2014 - Financial sector
Settlement period for securities transactions reduced
Pursuant to the CSD Regulation, which entered into force in September, securities transactions in Europe have to be settled within two working days following the transaction date. In the past this was three days. The shortening of the settlement period reduces counterparty, market and liquidity risks. As a consequence, less collateral is needed.
29 September 2014 - Supervision
ECB publishes guide to banking supervision
The ECB and all national supervisors in the euro area will be jointly responsible for European banking supervision. This is why it is important that all participating countries work with the same procedures and standards. The ECB's guide provides a detailed description of all procedures related to banking supervision.
23 September 2014 - Payments
Launch of new €10 banknote
The new €10 banknote is launched. Following the introduction of the new €5 note, this is the second banknote in the Europa series. The note has new security features, including a portrait of Europa in its watermark and the hologram, a striking green number and raised print on the left and right edges of the banknote. The note is also more durable owing to a protective layer.
18 September 2014 - Financial sector
ECB provides first TLTROs
255 European banks are allotted EUR 82.6 billion in the first targeted longer-term refinancing operations (TLTROs), a measure aimed at boosting lending to companies and households. The second TLTRO round will follow in December.
17 September 2014 - Financial sector
CSD Regulation for securities settlement takes effect
The aim of this European regulation is to promote a secure and efficient settlement process for transactions in financial instruments in the European Union. The regulation contains rules for the settlement of securities transactions, as well as an authorisation requirement for, and regular supervision of, central securities depositories (CSDs).
04 September 2014 - Europe
ECB lowers interest rates and announces purchase of packaged loans
In view of falling inflation, the ECB lowers both its policy rate and the deposit rate by 0.1 percentage points to 0.05% and -0.2%, respectively. In addition, the ECB announces that – further to the measures taken in June – it will this year launch a programme of buying packaged loans (asset-backed securities and covered bonds) from banks in the euro area. These measures are aimed at supporting the monetary transmission and lending operations.
03 September 2014 - Financial sector
Lower House hearing about the amendment of the financial assessment framework (financieel toetsingskader – FTK)
The standing parliamentary committee for Social Affairs and Employment invites DNB to a hearing in preparation for the public parliamentary consideration of the legislative proposal concerning the Financial Assessment Framework for pension funds. DNB welcomes the amendments to the FTK, which are aimed at making the system more shock-resilient and transparent, and recommends a swift introduction of the assessment framework. At the same time, DNB subscribes to the importance of a broad-based public debate about the future of the pension system.
03 September 2014 - Payments
New PIN agreement between banks and retailers
Banks and retailers sign up to the 2014-2018 PIN agreement to promote debit card payments. They also agree on efforts to keep the costs of payments down and to prevent disruptions in debit card payments as much as possible.
27 August 2014 - Financial sector
DNB sells remaining claim on Landsbanki
DNB sells its remaining claim on the insolvent Icelandic Landsbanki bank to Deutsche Bank. As a result of the sale, the EUR 1.6 billion of compensation paid out to Icesave depositors under the deposit guarantee scheme is recovered in full. DNB is no longer among Landsbanki's creditors.
19 August 2014 - Europe
Preparatory work for Single Resolution Board (SRB)
The European Commission sets to work as quartermaster of the European resolution authority. The SRB will formally kick off on 1 January 2015 and will start on drafting resolution plans for Europe's significant banks. This implements the Banking Union's second pillar, in addition to the single supervision regime. From January 2016, the SRB will also be directly responsible for the resolution of problem banks, for which a resolution fund will be set up funded by the banks. The Minister of Finance designates DNB as the national resolution authority, which means that DNB has a seat on the SRB.
01 August 2014 - Europe
August: Preparatory work for Single Resolution Board (SRB))
The European Commission sets to work as quartermaster of the European resolution authority. The SRB will formally kick off on 1 January 2015 and will start on drafting resolution plans for Europe's significant banks. This implements the banking union's second pillar, in addition to the single supervision regime. From January 2016, the SRB will also be directly responsible for the resolution of problem banks, for which a resolution fund will be set up funded by the banks.
01 August 2014 - Payments
SEPA migration completed
The Netherlands and other euro area countries complete the transition to uniform standards covering bank account numbers (IBAN), credit transfers and direct debits. In some countries, transitional provisions still apply. The transition creates the conditions for an efficient European payment system in the single euro payments area (SEPA).
02 July 2014 - Economy
ING floats Nationale Nederlanden on stock exchange
As a first step in hiving off Nationale Nederlanden, ING sells a little over one quarter of all shares. The Initial Public Offering follows an earlier decision made by the European Commission. Rating agency Fitch confirms ING's credit rating at A+ in late July, but maintains its negative outlook.
01 July 2014 - Pensions
Pension Fund Governance Reinforcement Act (Wet versterking bestuur pensioenfondsen – Wvbp) comes into effect
This Act strengthens the governance and internal supervision of pension funds. One of the measures resulting from this Act is that pensioners must be represented on pension fund boards. While most pension funds have amended their articles of association, DNB finds that several funds have not yet complied with these statutory obligations.
27 June 2014 - Financial sector
DNB appointed as national resolution authority from 2015 onwards
The formation of the European banking union requires the appointment of national resolution authorities. The Cabinet designates DNB as the national resolution authority for banks in the Netherlands. Following embedding of the European rules and regulations in Dutch legislation, DNB will be formally responsible for the resolution of national small banks. DNB will also be part of the central European resolution authority. In this capacity, it will take part in decision-making on the resolution of Dutch large banks (or of business units of foreign banks having their registered offices in the Netherlands).
27 June 2014 - Supervision
DNB adjusts organisational structure to accommodate the upcoming banking union
The implementation of the European Single Supervisory Mechanism (SSM) will transfer a part of the responsibility for banking supervision to the ECB. DNB is to place more emphasis on the execution of supervisory duties. Banking supervision will be distributed across three divisions. DNB's horizontal functions, integrity supervision, and supervision policy will continue to be organised cross-sectorally. These changes will closely align the organisation of DNB's banking supervision divisions to the ECB’s organisational set-up. As a result of this shift in responsibilities, DNB's Governing Board is reduced from five to four members.
25 June 2014 - Pensions
State secretary of Social Affairs and Employment sends draft Act revising the financial assessment framework to the Lower House of Parliament
The new financial assessment framework aims to make pension contracts more complete by requiring pension fund boards to specify their indexation policies, premium policies, and financial crisis plans in advance. Distributing financial shocks more evenly will benefit the stability of the prudential framework for pension funds. DNB welcomes the objectives of the draft law: revision of the financial assessment framework is a necessary step that contributes to the desired restoration of confidence in the pension system.
10 June 2014 - Economy
Dutch economy expected to improve gradually
Due to non-recurring factors, economic growth in 2014 remains very modest at 0.2%. Still, according to DNB's half-yearly estimate, the economy undoubtedly shows underlying signs of recovery. This translates into an estimated accelerated economic growth of 1.6% in both 2015 and 2016.
05 June 2014 - Rente
The ECB lowers its policy rates and announces a package of additional measures
In view of the ongoing low level of inflation, the ECB lowers both its policy rate and the deposit rate by 0.1 percentage points to 0.15% and -0.10%, respectively, causing the deposit rate to become negative for the first time in history. The ECB also announces its intention to extend four-year loans to banks under certain conditions, in order to stimulate lending (excluding loans for house purchases). The package contains several other measures, including the suspension of the sterilisation of its Securities Markets Programme (SMP) purchases and the continuation of monetary policy transactions as fixed-rate tender procedures with full allotment until the end of 2016.
15 May 2014 - Europe
April/June: Greece and Cyprus make successful return to the financial markets
After a four-year absence from the debt markets, Greece on 10 April collects EUR 3 billion on the sale of five-year government bonds. The bonds are in such demand that the sale is seven times oversubscribed. For the first time in three years, Cyprus holds a bond sale on 18 June and raises EUR 750 million, also on five-year government bonds. Demand outpaces supply by over 2.5 times. Ireland and Portugal preceded Greece and Cyprus in their return to the capital market.
01 May 2014 - Europe
April/May: Credit ratings for peripheral euro countries improve
Both Fitch and Standard & Poor's raise their credit ratings of Spain in one step to BBB+ and BBB, respectively. Fitch also raises its rating of Greece in one step to B, while Moody's lifts its rating of Ireland in two steps to Baa1. The credit rating upgrades for these countries are prompted by improved economic conditions and the brightening outlook for their budgetary positions.
29 April 2014 - Financial sector
DNB imposes additional capital buffer on Dutch systemic banks
This capital buffer, known as the systemic buffer, is set at 3% of risk-weighted assets for ING Bank, Rabobank, and ABN AMRO Bank, and at 1% for SNS Bank. These banks must maintain these buffers because they play a crucial role in the financial system and deliver the vast majority of financial services to the real economy. Higher buffers will better enable these banks to absorb unexpected losses. These buffers will be phased in between 2016 and 2019.
25 April 2014 - Financial sector
Publication of SSM Framework Regulation
The publication of the SSM Framework Regulation is another milestone in de development of European banking supervision. The framework regulation governs how the ECB, together with the national supervisory authorities, will be shaping European banking supervision within the single supervisory mechanism (SSM). DNB has played an active role in drafting this regulation.
16 April 2014 - Financial sector
Resolution strategy for large Dutch banks endorsed
The Minister of Finance and DNB endorse the resolution strategies for ING Bank, Rabobank, and ABN AMRO Bank. The strategies outline the approach to possible resolution of the large banks. A single-point-of-entry strategy has been chosen for all three of the large banks, which places the centre of gravity for resolution at the group level. The strategies are currently being translated into operational plans.
12 April 2014 - Economy
Deadline voor quotaherziening IMF weer niet gehaald
The changes in the IMF's governance structure agreed in 2010 and the IMF quota review have not been implemented before the January 2014 deadline. The IMF quotas for instance determine the voting power that countries have and the maximum financial contribution that they are required to make to the Fund. The 2010 framework changes lead to an increase in the IMF's total resources and a redistribution of quotas in favour of dynamic, mostly emerging economies. The main bottleneck is the absence of ratification by the US, which the IMF regrets. The Netherlands ratified the changes in 2011.
01 April 2014 - Supervision
DNB gives EMIR authorisation to central counterparty EuroCCP
The Amsterdam-based EuroCCP NV is the second central counterparty (CCP) in Europe to receive EMIR authorisation under the European Market Infrastructure Regulation (EMIR), which seeks to achieve a level playing field by creating a uniform European supervision framework for CCPs. EMIR requires that all CCPs in Europe apply for authorisation, i.e. including CCPs that do not settle derivatives (like EuroCCP). DNB is designated as the national competent authority for CCPs in the Netherlands, which also makes it the licensing authority.
31 March 2014 - Economy
Confidence in EU government recovers
In January, for the first time in three years, Portugal secured a five-year syndicated loan of EUR 3.25 billion while in February, the reopening of an outstanding ten-year bond brought in another EUR 3 billion. In early March, for the first time in four years, Ireland held a regular government bond auction in the market for EUR 1 billion. Over the past years, Ireland received EUR 85 billion of emergency funding. The Portuguese support programme totalling EUR 78 billion ended in May 2014.
27 March 2014 - Financial sector
Ceremonial first strike of €5 coin to commemorate DNB's bicentenary
For the first time in the 200 years of DNB's existence a coin is dedicated to the central bank. Klaas Knot, for years the Chairman of the Royal Dutch Mint Advisory Committee, was granted the honour to mint the first coin in Utrecht with a ceremonial first strike.
25 March 2014 - Financial sector
DNB 200 years
On 25 March 1814, King William I, even before his inauguration as King of the Netherlands, signed the decision comprising the Patent and Regulations for De Nederlandsche Bank. In accordance with the decision, the institution was to be a truly national bank.
20 March 2014 - Europe
Political agreement on single resolution mechanism for banks
The European Council and the European Parliament reach political agreement on a single resolution mechanism (SRM), the second pillar of the banking union. The SRM consists of a Single Resolution Board (SRB) that takes decisions on the resolution of problem banks and has access to a Single Resolution Fund (SRF). With the SRF and the use of bail-in, the costs of bank failure are in the first place borne by creditors, followed by the banking sector itself, and no longer by a single country or its citizens. The SRM starts on 1 January 2015, but will only be using the bail-in instrument for the resolution of banks as of 1 January 2016.
15 March 2014 - Europe
February/March: Ireland and Portugal regain access to capital markets
In January, for the first time in three years, Portugal secured a five-year syndicated loan of EUR 3.25 billion while in February, the reopening of an outstanding ten-year bond brought in another EUR 3 billion. In early March, for the first time in four years, Ireland held a regular government bond auction in the market for EUR 1 billion. Over the past years, Ireland received EUR 85 billion of emergency funding. The Portuguese support programme totalling EUR 78 billion ended in May 2014.
11 March 2014 - Europe
European Parliament approves Omnibus II Directive for insurers
This is a major step towards Solvency II, the risk-based supervisory framework for insurers, which will come into effect on 1 January 2016. The Omnibus II Directive includes a transitional arrangement for the introduction of Solvency II, the role of the European Insurance and Occupational Pensions Authority (EIOPA) and the treatment of insurers' long-term products.
05 March 2014 - Supervision
DNB publishes its Supervisory Strategy 2014-2018
Once every four years DNB publishes its Supervisory Strategy, in which it charts the course for supervision in the years ahead and shares this with the sector. Major focal point in the new strategy forms the introduction of the European banking union. Other spearheads are transparency and the sharpness of risk analyses, both at DNB as a supervisor itself and at the institutions. Integrity also remains an important area for attention. New in its strategy, is that for each sector-specific challenge DNB indicates clearly where it would like to be in four years' time.
27 February 2014 - Economy
Ukraine requests IMF for support
After continued protests, president Yanukovych flees. The political turmoil means the country losses access to the capital market. The new authorities request the IMF for a support package. The organisation sends a fact-finding team to Kiev to make an assessment of the economic situation.
26 February 2014 - Payments
Extended transitional period for SEPA migration
The single euro payments area (SEPA) aims at standardising all euro payments in Europe, so that there is no longer any difference between a domestic payment or payments in euro made to other European countries. By European Regulation, an extended transitional period has been agreed for the SEPA migration, so that enterprises and consumers are allowed to use the old national credit transfers and direct debits until 1 August 2014. The National Forum on SEPA migration (NFS) headed by DNB has nevertheless called on market parties to effect the migration as quickly as possible.
14 February 2014 - Europe
Portfolio selection completed – start of comprehensive assessment of European big banks
The ECB has completed phase 1 of the comprehensive assessment (CA), conducted in the run-up to the start of European banking supervision. In this phase the ECB selected the portfolios of banks' assets to be subjected to the asset quality review (AQR). Phase 2 runs from 14 February until 31 July 2014 and comprises the actual AQR and a forward-looking stress test. Together with the ECB and in close contact with the banks, DNB assesses whether the risks inherent to the selected assets have been incorporated well in the provisions and capitalisation.
See also 23 October 2013
07 February 2014 - Supervision
Start of consultation on the SSM Framework Regulation
The consultation on the SSM Framework Regulation marks another important milestone on the road to European banking supervision. Once implemented, the Framework Regulation will set out how the ECB, together with the national competent authorities, will shape European banking supervision or the single supervisory mechanism (SSM). DNB has played an active role in writing this draft regulation.
30 January 2014 - Supervision
First meeting of the ECB's Supervisory Board
The ECB's Supervisory Board meets for the first time in Frankfurt. As of November 2014, the Supervisory Board is responsible for European banking supervision. The Supervisory Board is composed of representatives of the national competent authorities in the euro countries, including DNB Executive Director Jan Sijbrand, and is headed by Danièle Nouy.
23 January 2014 - Supervision
Publication of the evaluation report on the nationalisation of SNS Reaal
The report by the Evaluation Committee concludes that the nationalisation of SNS Reaal was inevitable in the absence of any useful alternative solutions. The report also contains recommendations for DNB and the Ministry of Finance.
See also 4 April 2013
17 January 2014 - Economy
Fitch confirms highest credit rating for the Netherlands
Despite this, the negative outlook is sustained in view of the weak growth perspectives. Credit rating agency Fitch deviates from the assessment made by Standard and Poor’s, which end November 2013 marked down the Netherlands.
01 January 2014 - Financial sector
Financial stability embedded in DNB mandate
Promoting financial stability has been formally encased in the Bank Act as a DNB task. DNB's new macroprudential instruments provide the tools needed to fulfil this task. Higher buffers may for instance be imposed amid growing financial imbalances. The ultimate aim is to achieve a more stable development of economic growth and employment.
01 January 2014 - Basel III
New European banking legislation (CRD IV/CRR) comes into effect
The Capital Requirements Directive and Regulation (CRD IV/CRR) implement the Basel III Accord. Banks are required to hold larger and better quality buffers and stricter rules apply to their liquidity.
01 January 2014 - Supervision
Supervision of settlement institutions included in the Financial Supervision Act
Settlement institutions are included in the scope of prudential supervision under the Financial Supervision Act (Wet op het financieel toezicht – Wft). These institutions provide services such as the authorisation of debit card payments and the processing of credit transfers and direct debits. In part, they already came under DNB's voluntary payments supervision (oversight). The Wft now provides DNB with new enforcement instruments, while an authorisation requirement applies to firms that process a considerable share of Dutch payments, as a service interruption with these could cause social disruption.
01 January 2014 - Payments
Latvia adopts the euro
Latvia abandons the lat and adopts the euro, thus becoming the eighteenth euro country.
01 January 2014 - Supervision
Entry into force of Solvency II guidelines for insurers
The guidelines serve as a preparation for applying a number of important elements of Solvency II, including new requirements for reporting and governance at insurers. With the guidelines, the European Insurance and Occupational Pensions Authority (EIOPA) wants to promote a consistent preparation to Solvency II by insurers in the Member States.
18 December 2013 - Europe
Member States agree on Single Resolution Mechanism.
The European finance ministers come to a Member State agreement on the Single Resolution Mechanism (SRM). This agreement will underlie the ministers’ negotiations with the European Parliament and the European Commission. The aim is to reach agreement before the 2014 elections for the European Parliament. Also, the European finance ministers reached agreement on a public sector ‘SRM backstop’ for the Single Resolution Fund.
18 December 2013 - Europe
Review of the Deposit Guarantee Scheme (DGS) Directive.
After more than three years of negotiations, the European Parliament and the Council have come to a final agreement. The new DGS Directive is to take effect in early 2015. In principle, Member States will be required to accumulate a deposit guarantee fund with a minimum target size of 0.8% of the guaranteed deposits. The DGS may be drawn on for the financing of disbursements and bank resolution, but also for preventive measures. Apart from retail deposits, the new system will also cover wholesale corporate deposits.
12 December 2013 - Europe
European agreement on Bank Recovery and Resolution Directive.
The European finance ministers, the European Parliament and the European Commission reach agreement on the Bank Recovery and Resolution Directive. This piece of legislation lays the foundation for the Single Resolution Mechanism. It must be implemented in national legislation by 1 January 2015. On that date, Member States must begin to accumulate national resolution funds. The bail-in instrument must be in force by 1 January 2016.
09 December 2013 - Insurers
Regulation providing a Theoretical Solvency Criterion for Insurers becomes permanent.
The Regeling theoretisch solvabiliteitscriterium levensverzekeraars Wft or TSC acquires permanent status. The criterion provides an indication as to whether a life insurer faces potential solvency issues. The TSC is one of several measures aiming to strengthen insurance supervision. The rules will come into force on 1 January 2014.
09 December 2013 - Economy
Economy turns up.
The projected tentative recovery should bring modest economic growth in 2014, after a 1% contraction in 2013. In 2015 growth is expected to pick up to approximately 1%.
29 November 2013 - Economy
The Netherlands loses AAA rating by Standard and Poor’s.
The US credit rating agent lowers its rating from the topmost ‘triple A’ to AA+ with a stable outlook. The other two top-ranking rating agents, Moody’s and Fitch, maintain their AAA ratings.
15 November 2013 - Europe
The European Council (ECOFIN) endorses the three-stage recapitalisation process for banks reporting capital deficits in the ECB Asset Quality Review.
Banks must begin by exhausting all private sources of capital. Next, Member States must take individual recapitalisation measures, as in the form of national resolution regimes and the creation of national backstops. Such measures are subject to the new state support rules of the European Commission. If the national backstops fall short, Member States may have recourse to the European Stability Mechanism (ESM).
13 November 2013 - Europe
European agreement on reinforcement of insurance supervision.
The trialogue meeting of the European Parliament, the European Commission and the European Council reaches agreement on the Omnibus II Directive. The political agreement marks a major step towards the establishment of a European supervisory framework – Solvency II – that will further European harmonisation of insurance supervision.
07 November 2013 - Rente
ECB reduces its main refinancing rate to 0.25%.
This rate, which is the rate at which banks can borrow money from the ECB, has never been so low. In the past months, the rate was already at the historic low of 0.5%.
01 November 2013 - Financial sector
Government and ING agree on sale of alt-A portfolio.
The Minister of Finance and ING reach agreement on the termination of the Illiquid Assets Back-up Facility. Created in 2009 to help restore calm in the financial markets, this facility relates to a portion of ING’s US securitised mortgage portfolio (dubbed ‘alt-A portfolio’) which at the time was barely tradable. The sale marks a further step in the phase-out of the State support measures for ING.
29 October 2013 - Supervision
Measures against Rabobank announced in Libor affair.
Rabobank was fined a total of EUR 774 million, including a EUR 70 million fine imposed by the Dutch public prosecutor. In addition, disciplinary and bonus-related measures were taken, and prudential measures were imposed to strengthen Rabobank’s internal organisation and culture.
23 October 2013 - Europe
ECB announces start of EU-wide assessment of banks.
The ECB has completed the preparation of the comprehensive assessment (CA). The CA aims to get a clear picture of the condition of European banks’ balance sheets and to identify any deficiencies before supervision is transferred to the SSM.
01 October 2013 - Pensions
Ministry of Social Affairs and Employment modifies draft Act reviewing the Financial Assessment Framework.
Having consulted the sector, State Secretary Jetta Klijnsma of Social Affairs and Employment states in a notice to Parliament that the new framework (FTK) will be based on a single type of pension contract. This intermediate variant should combine the strong points of both the ‘nominal’ and the ‘real’ pension models and make the system less sensitive to heavy shocks in the financial world. At the same time, the new framework should ensure more explicit disclosure of the way risks are managed. This is further laid down in legislation.
24 September 2013 - Supervision
DNB not negligent in supervising Icesave.
In the liability suit brought against DNB by Vereniging Icesaving, the District Court rules that DNB did not act negligently vis-à-vis harmed depositors of Icesave in its supervision of that Landsbanki branch office.
15 September 2013 - Payments
Statutory supervision for clearing houses.
Two Dutch central counterparties (CCPs) applied before the 15 September 2013 deadline for authorisation by DNB under the European Market Infrastructure Regulation (EMIR). Consequently, these CCPs will come under formal supervision by DNB. In this context, the College of Regulators of the European Multilateral Clearing Facility (EMCF) has met for the first time.
12 September 2013 - Supervision
Agreement on banking union.
The European Parliament passes the Single Supervisory Mechanism Regulation. The SSM is made responsible for the supervision of some 5,000 banks in the euro area. Some 130 of Europe’s largest banks are placed under the direct supervision of the SSM, headed by the ECB. The Regulation takes effect on 4 November 2013. The SSM will become operative exactly a year later.
10 September 2013 - Pensions
DNB loses case on gold investments by pension fund.
The Appeals Board for Trade and Industry rules that DNB has wrongly instructed the Pensioenfonds Vereenigde Glasfabrieken to reduce its investments in gold.
23 August 2013 - Financial sector
Cabinet presents its vision on the future of the banking sector.
The Minister of Finance presents a Cabinet memorandum on the banking industry, including a reaction to the recommendations of the Wijffels Commission. The memorandum presents policy proposals on capital requirements, European supervision, crisis management, stronger competition, the promotion of business ethics and client-centred banking.
07 August 2013 - Pensions
Pension Fund Governance (Further Measures) Act takes effect.
The new Act strengthens funds’ governance and internal supervision, tightens he suitability requirements for (co-)policymakers and safeguards balanced decision-making.
22 July 2013 - Supervision
Alternative Investment Fund Managers Directive (AIFM-D) takes effect
The Directive places a new group of institutions under financial supervision. The supervision of managers of alternative investment funds – such as private equity, hedge and real estate funds – is exercised by the AFM and DNB. A one-year transition period applies.
12 July 2013 - Pensions
Ministry of Social Affairs and Employment launches consultation on draft review of the Financial Assessment Framework.
The State Secretary of Social Affairs and Employment publishes a draft Act establishing a new Financial Assessment Framework (FTK) for consultation. The review of this FTK marks an important step towards a future-proof pension system. DNB fulfils an advisory role in this process.
10 July 2013 - Europe
European Commission proposes draft Regulation for the Single Resolution Mechanism.
The mechanism consists of a Single Resolution Authority governed by a Single Resolution Board. This Board will prepare decisions to be taken by the European Commission. The mechanism will have recourse to a Single Resolution Fund and the instruments provided by the BRRD.
04 July 2013 - Rente
ECB expects low interest rates to last.
The ECB announces it expects interest rates to remain at the current or a lower level for some time to come.
27 June 2013 - Europe
The European Council (ECOFIN) reaches political agreement on the Bank Recovery and Resolution Directive (BRRD).
The BRRD harmonises and modernises national bank resolution legislation in Europe. Banks must draw up recovery and resolution plans ensuring orderly winding up without risks to financial stability or taxpayers.
10 June 2013 - Economy
Dutch economy in dire straits.
In its half-yearly forecast, DNB foresees a slow recovery of the Dutch economy. In 2013, with policy unchanged, the economy is expected to contract by 0.8%, followed by a moderate 0.5% growth in 2014.
02 May 2013 - Rente
ECB reduces interest rate to 0.5%.
The Governing Council of the ECB decides to reduce its policy rate by 25 basis points to 0.5%, the lowest level since the introduction of the euro. ECB President Mario Draghi cited low inflation (then 1.2%) and persistently weak economic activity in the euro area as underlying the interest rate move.
02 May 2013 - Payments
Launch of new EUR 5 banknote.
The first banknote in the new Europa series is put into circulation. The new note is more durable and safer thanks to new security features. The EUR 5 is the first new euro note since the introduction of the cash euro.
16 April 2013 - Basel III
European Parliament agrees on strengthening of banking regulations (CRD IV/CRR).
The new European regulations implement the Basel III Accord aiming to strengthen the size and quality of banks’ capital buffers and imposing stricter rules on banks’ liquidity. The regulations come into force on 1 January 2014.
05 April 2013 - Payments
Dutch large banks targeted by DDoS attacks.
In a DDoS attack (Distributed Denial of Service), an on-line banking site is deliberately flooded with response requests, making the site temporarily unavailable to regular users.
04 April 2013 - Supervision
Evaluation Committee on the Nationalisation of SNS Reaal installed.
The committee is to investigate whether the Ministry of Finance and DNB responded in time and adequately to the problems at SNS.
04 April 2013 - Insurers
National strengthening of insurance supervision announced
The Ministry of Finance, in consultation with DNB, decides to strengthen insurance supervision in the Netherlands amid continuing uncertainty over Solvency II. The Ministry announces the drafting of national legislation in preparation for a more risk-based and forward-looking supervisory regime, including mandatory internal risk assessments for insurers, a theoretical solvency criterion and restricted dividend payment options for firms facing solvency problems.
01 April 2013 - Pensions
66 pension funds decide to curtail pensions in a bid to restore their funding ratios. The weighted average cut amounts to almost 2%.
25 March 2013 - Europe
Eurogroup agrees on support programme for Cyprus.
The Eurogroup reaches agreement on a support programme for Cyprus. The EU/IMF programme includes measures to restore government finances and economic growth. Also, it entails a major overhaul of the Cypriot banking system.
25 February 2013 - Supervision
Council of State endorses SNS Reaal expropriation.
The Council of State, the supreme administrative law court, rules that on 1 February 2013 the Minister of Finance acted within the law in expropriating the assets and subordinated loans of SNS Bank and SNS Reaal.
01 February 2013 - Supervision
Nationalisation of SNS Reaal.
SNS Reaal is nationalised after all private and public-private options have fallen through. Shareholders and holders of subordinated loans are expropriated. At the same time, stabilisation measures are taken (including a capital injection and the creation of a bad bank) at a cost of EUR 3.7 billion to the State. A EUR 1 billion resolution charge is levied from the banking community. The nationalisation marks the first use of the Intervention Act, which gives the Ministry of Finance and DNB wider powers to act vis-à-vis troubled financial institutions.
25 January 2013 - Financial sector
Banks partially redeem loans to the ECB.
The ECB announces that 278 banks have used the first opportunity to pay back their loans taken out under the longer-term refinancing operations. On 30 January, they pay back a total of over EUR 137 billion to the ECB.
01 January 2013 - Economy
New constraints on residential mortgage lending and interest tax relief take effect.
From 1 January, regulations on home mortgage financing are tightened. For one thing, the loan-to-value ratio of the collateral is limited to 105%. Over the coming years, this limit will be gradually lowered to 100% in 2018. At the same time, the tax deductibility of interest on mortgage loans is reduced. To qualify for tax relief, new mortgage loans must be redeemed within 30 years and on at least an annuity basis.