Preparation is very important to deal with a crisis effectively. At De Nederlandsche Bank (DNB), we determine in advance how we will intervene if an insurer is likely to fail. This is known as resolution planning.
We first determine whether an insurer actually qualifies for resolution. We do this by conducting a “public interest test,” in which we analyse whether a specific insurer's bankruptcy would have an unduly negative impact on the financial markets, the economy or society. We then assess whether resolution or bankruptcy is the best solution to minimise such negative impact . If the specific insurer qualifies for resolution, we draw up a resolution plan setting out the following matters:
We contact an insurer before we draw up its resolution plan to request the information we need. Once we have finished the plan, we share the overall conclusions with the insurer.
DNB only draws up resolution plans for insurers that qualify for resolution, so most insurers do not have one. We inform all insurers about whether or not they qualify.
Thanks to buoyant stock markets worldwide, Dutch pension funds recorded strong price gains of almost €36 billion on their equity and investment fund shares, according to macroeconomic data from DNB.
Read more Dutch pension funds see assets grow due to price gains on equities
The Dutch conduit sector is shrinking faster than previously assumed. This is one of the findings of a five-yearly revision of the balance of payments figures, the results of which are being published by DNB today.
Read more Contraction of Dutch conduit sector previously underestimated
‘Economic growth in the Netherlands is expected to pick up in the year ahead, spurring confidence in a “soft landing” for our economy.’ Klaas Knot said this today during the annual public session in the House of Representatives on macroeconomic risks to the financial system.
Read more Klaas Knot’s introductory statement for the Standing Parliamentary Committee for Finance
Higher mortgage rates over the past two years caused house prices to fall temporarily, but now they are rising. How can that be explained?
Read more Explanations for rapid recovery of house prices
