Last year, regulator De Nederlandsche Bank (DNB) tackled Knab, the former online banking subsidiary of bancassurer Aegon, firmly. The bank was forced to divest hundreds of millions of euros in loans. Risk management and the credit portfolio were not in order, despite repeated warnings and reminders from the regulator. This is apparent from Knab’s annual report, which the FD reports.
For years, DNB has encountered what it sees as inadequate risk management at Knab. The online bank had issued many loans through all kinds of digital credit platforms at home and abroad. According to DNB, the profit and growth ambitions were more important than good risk management and the bank therefore violated the legislation for banks.
DNB wanted Knab to put things in order, but there was no improvement. DNB increased the pressure and Aegon decided last year to accelerate the divestment of the risky loan portfolio. Knab has reduced lending via platforms to less than 2 percent of the total balance sheet.
Last October, Aegon sold all Dutch insurance and pension activities to insurer ASR, including Knab, for almost 5 billion euros.