Legal Aspects of Banking - Assignment 4 Banking System in Netherlands
Legal Aspects of Banking - Assignment 4 Banking System in Netherlands
Legal Aspects of Banking - Assignment 4 Banking System in Netherlands
Submitted By:
Amit Kumar Sindhu
PRN-18020942053
The Netherlands Bank
Introduction :
De Nederlandsche Bank (DNB) is the Dutch central bank, financial sector supervisor and resolution
authority. DNB is a public limited company led by a Governing Board consisting of a President and three
to five Executive Directors. The Supervisory Board supervises the general course of business at DNB and
the Governing Board’s policy regarding the implementation of DNB’s national tasks.
As a part of the ESCB, DNB is co-responsible for the determination and implementation of the
monetary policy for the Euro area, besides being a link in the international payment system.
As an independent public body, DNB exercises prudential supervision of financial institutions.
The Bank of the Netherlands ensures fiscal and operational supervision over the officially registered
financial institutions. Fiscal supervision includes monitoring compliance with the liquidity and solvency
of credit institutions prescribed level and licensing agencies after their foundation. The Central Bank has
the authority to license foreign exchange transactions, but in fact he communicated the functions of
commercial banks. The central bank act as intermediary in international payments, it also oversees the
issuance of securities in the domestic market (it doesn’t engage in commercial transactions)
DNB also has various national tasks, which are laid down in the Bank Act 1998. It supervises banks, trust
offices, pension funds and insurance companies, among other institutions. The supervision of banks in
the euro area is organised in the Single Supervisory Mechanism (SSM). DNB also safeguards the smooth
operation of the payment system in the Netherlands and manages the circulation of banknotes. It is
responsible for overseeing financial stability in the Netherlands and issues independent economic
advice. DNB’s other tasks include compiling statistics, discharging its national resolution tasks and
implementing the deposit guarantee scheme (DGS).In addition, DNB performs several public tasks
relating to coins. It is also responsible for banking supervision and ensuring an effective payment system
in the islands of Bonaire, St Eustatius and Saba (the Caribbean Netherlands). In respect of its
supervisory, resolution and DGS tasks, DNB is an independent public body, largely governed by the
Independent Public Bodies Framework Act
Regulatory authorities :
Lead bank regulators
The lead bank regulators are the:
European Central Bank (ECB).
Dutch Central Bank (De Nederlandsche Bank) (DNB).
Dutch Authority for the Financial Markets (Autoriteit financiële markten) (AFM).
Screenshots
Types of Banking Services :
Retail Banking
Corporate Banking
Investment Banking
Private Banking
Personal Banking
Insurance
NRI Banking
Loans
This statistic shows the total number of banks in the Netherlands from 2008 to 2017. At
the end of 2017, there were 44 banks in the Netherlands. Banking is an important
service industry in the Netherlands, being responsible for the funding of both
international as well as domestic trade.
Dutch banking has two important characteristics. Firstly, only a few large institutions
dominate its financial markets. In 2016, for example, the five largest Dutch credit
institutions, which includes the likes of ING, Rabobank and ABN Amro, held
approximately 85 percent of the total assets. Secondly, the Dutch banking sector is one
of the most concentrated in Europe.
In the period between 2008 and 2017, the total number of banks in the Netherlands
decreased from 93 banks in 2007 to 44 banks in 2016. In this period of time, the size of
the banking sector as a whole in the Netherlands decreased. The total number of bank
offices, for example, reached a total number of approximately 3,400 in 2008. In 2017,
this was around 1,600.
This statistic shows the leading banks in the Netherlands as of January 2019, by number of
bank branches. In January 2019, SNS Bank had the fourth-most number of offices, with
approximately 200. In the period between 2007 and 2016, the total number of banks in the
Netherlands decreased from 99 banks in 2007 to 50 banks in 2016. In this period of time,
the size of the banking sector as a whole in the Netherlands decreased. The total number of
bank offices, for example, reached a total number of approximately 3,400 in 2008. In 2016,
this was less than 1,700.