Decrease in Dutch financial sector's exposures to foreign private counterparties

Statistical News Release
Date 27 September 2013

Foreign exposures of the Dutch financial sector fell by EUR 33 billion in the second quarter of the year, with exposures to the private sector seeing the strongest decrease: EUR 27 billion. The remainder of the decline related to sovereigns and the banking sector. Foreign exposures to counterparties both inside and outside the euro area fell.

Total foreign exposures of the Dutch financial sector decreased by EUR 33 billion (-1.8%) in the second quarter of 2013, compared with an increase of EUR 62 billion (+3.6%) in the first quarter of this year. Foreign exposures of the Dutch financial sector totalled EUR 1,746 billion at the end of the second quarter of 2013, reflecting the still very strong international orientation of the Dutch financial sector.
 
The decrease in the Dutch financial sector´s foreign exposures in the second quarter of 2013 was attributable to both Dutch pension funds (EUR -20 billion) and Dutch banks (EUR -12 billion). Foreign exposures of insurers remained more or less the same in the second quarter. The largest change related to Germany, with total exposure to that country falling by EUR 8 billion.

Foreign exposures of the Dutch financial subsectors

 

The decline in foreign exposures was strongest for the private sector (-2.6%), even though the first quarter had seen an increase in exposures to private counterparties (+3.8%). The decrease in foreign exposures related to private counterparties inside and outside the euro area. In geographical terms, the decrease was strongest with respect to private counterparties from the United States (EUR -5 billion), followed by Germany (EUR -3 billion), Spain (EUR -2 billion) and France (EUR -2 billion). The fall in exposures to the United States was mainly due to net sales of securities by Dutch pension funds. The decrease in exposures to the private sector in Germany and Spain primarily related to exposures of Dutch banks.

Foreign exposures of the Dutch financial sector to the private sector

Along with the decrease in exposures to foreign private counterparties described above, there was also a movement in total exposures to foreign sovereigns. The strongest decline in exposures to sovereigns was recorded for Germany and France, EUR 4 billion and EUR 3 billion, respectively, mainly due to price losses. In contrast, exposures to the governments of Italy and Spain rose, by EUR 3 billion in total, mainly due to net purchases of government bonds. 
 
The same quarter also saw a decline in domestic exposures. The exposure of the Dutch financial sector to the Netherlands fell by EUR 7 billion in the second quarter of 2013. Exposures to the Dutch private sector (noot 1) and the banking sector dropped by EUR 6 billion and EUR 5 billion, respectively. The exposures to the Dutch government increased by EUR 4 billion, mainly as a result of purchases of government bonds by Dutch pension funds, and - to a lesser extent - by insurers.


Noot 1: The decrease in exposures to the private sector was due to securitisations, i.e. transactions involving the sale and transfer of loans to special purpose vehicles.