- DNBulletin: Energy efficiency is factored in well in the Dutch housing market
The price difference between “green” homes (with energy labels A, B or C) and “non-green” homes can well be explained by the costs involved in making non-green dwellings sustainable. These findings follow from research conducted by DNB. The energy labels, which are now mandatory under European legislation, help homebuyers to better factor in expected energy consumption. This encourages homesellers to make their houses more sustainable.
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- DNBulletin: United Kingdom's inward and outward foreign direct investment plunge into the red
- The EU's net foreign direct investment into the United Kingdom (UK) has declined since the June 2016 Brexit referendum. The same applies conversely, with UK investment flows into the other 27 EU Member States (EU27) also having fallen off. Foreign direct investment (FDI) flows in both directions have been in negative territory since the second quarter of 2018. Specifically between the UK and the Netherlands, this has been the case since the third quarter.
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- Overvaluation of real estate appraisals
Reliable appraisals are crucial for the proper valuation of residential and commercial real estate and hence for the effective operation of the financial system. Since several stakeholders have expressed their concerns about the quality and independence of residential property appraisals, DNB decided to examine the quality of such appraisals. In around 95% of cases, the appraisal value was equal to or higher than the purchase price of the residential property. This is a clear indication of systematic overvaluation.
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- Dutch financial sector also faces environmental and social risks
A recent report issued by De Nederlandsche Bank (DNB) reveals that the Dutch financial sector is exposed not only to climate-related risks, but also to other environmental and social challenges. Water stress, raw material scarcity, biodiversity loss and human rights controversies also present risks. The DNB study also shows that financial institutions show ambition in the area of sustainability, but they could take further action to integrate those ambitions into their operational management.
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- DNBulletin: New version of DELFI simulation tool
- DNB has updated its DELFI simulation tool, which allows one to simulate future paths for the Dutch economy. The simulations provide insights into the effects of changes in economic policy or the (international) economic environment on the economy of the Netherlands. The reason for the update is that the underlying model of the Dutch economy has been revised.
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- DNBulletin: Trade war between the United States and China – who wins and who loses?
A trade war between the United States and China is set to cause serious damage to both countries. The euro area may be able to benefit temporarily, provided it does not get involved.
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- DNBulletin: Impact on the Dutch economy from carbon tax expected to be manageable
- A broadening or increase of the tax that corporations pay on their greenhouse gas emissions does not have to exert a major impact on the Dutch economy as a whole. Profound effects may, however, occur in a number of specific industry sectors. These effects may be partly cushioned by using the carbon tax revenues to give a financial impetus to the transition to cleaner technologies.
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- DNBulletin: Strong rise in income for cyclically-sensitive self-employed
- During the current boom period, income development for the self-employed, who represent a substantial part of the active working population, has been more favourable than for employees. As a result, total income development in the business sector is underestimated if only the income development of employees is considered.
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- DNBulletin: DNB experiments with blockchain technology
Blockchain technology as yet fails to meet the very high demands of a financial market infrastructure. The experiments we carried out with this technology led us to this conclusion. Among the principal limitations are capacity shortages, inefficiency caused by high energy consumption, and a lack of full certainty that a payment is completed. However, blockchain technology could improve a financial market infrastructure's resilience to external attacks, at the expense of its capacity and efficiency.
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- DNBulletin: Supervision should take the financial sector's heterogeneity into consideration
- There are indications of increased homogeneity among banks. More attention should be given to promoting heterogeneity in the financial sector, as this helps to improve financial stability. This is the conclusion of a study into proportional and effective supervision, which DNB published today. A more diverse financial sector reduces the impact of an external shock on financial stability.
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- DNBulletin: Structural reforms needed right now
''Modernising the economic structure by implementing structural reforms is perhaps the greatest challenge for the euro area," said DNB President Klaas Knot, at the launch of “Structural Reforms: Moving the economy forward”, a DNB-edited publication.
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- DNBulletin: Dutch consumers increasingly use their smartphones for person-to-person (P2P) payments
- While most P2P payments are still made in cash, the number of smartphone payments is on the rise. Contrary to payments at points of sale (41.4% cash payments and 58.1% electronic payments), cash payments are still the standard for P2P transactions, with 72% being made in cash. The number of smartphone payments in P2P transactions is steadily increasing, however. Compared to 2016, the number of smartphone transactions between family members, friends, colleagues and other acquaintances has tripled to 96 million, which equals 21% of all P2P transactions between acquaintances. Consumers also use their smartphones for other types of transactions, such as for school- and sport-related activities and charities, but to a lesser extent. These data were revealed in a joint study undertaken by the Dutch Payments Association and De Nederlandsche Bank (DNB) into the use of cash and electronic payments in the Netherlands in 2017.
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- DNBulletin: Age effect depresses wage growth during economic revival
- The ageing of the population is having a structural upward effect on wage growth at the macro level. In addition to this, there is a cyclical age effect at play: during recessions, wage growth comes under upward pressure, while downward pressure occurs during economic upswings.
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- DNBulletin: Financial crisis widened price level differences in Europe, but not in the United States
- Price level dispersion in the euro area declined sharply since the 1960s, to a level comparable to the differences between US city regions. However, DNB research shows that price level dispersion in the euro area is increasing again, partly as a result of the financial crisis. This is an indication of incomplete economic integration.
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- DNBulletin: Labour market flexibilisation linked to fall in labour income share
- A data analysis involving eight Dutch industries between 1996 and 2015 shows that the decline of the labour income share (LIS) coincides with increased labour market flexibilisation. The weaker negotiating position of workers on flexible contracts compared to that of employees on permanent contracts may explain this decline.
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