‘No reason for a bank run in the Netherlands’

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‘No reason for a bank run in the Netherlands’

Topman Klaas Knot of De Nederlandsche Bank (DNB) does not expect a major banking crisis in the Netherlands. “The causes that were at the root of the problems at banks in the United States and at Credit Suisse do not occur at Dutch banks,” says Knot in conversation with BNR.

The banking crisis elsewhere is therefore ‘not a concern that is at the top of my list’, says Knot, who, as CEO, shared the bad news that DNB had suffered losses for the first time in ninety years. This is mainly due to the rapid rise in interest rates.

Bank run

It is credible that the banking crisis will not spread to the Dutch banking sector, according to BNR’s house economist Han de Jong. “Ultimately, if all the account holders of a bank worry and withdraw their money, every bank will collapse.” But that scenario is not realistic, says De Jong. ‘In the Netherlands there is no reason at all to do that, while it was different at the Silicon Valley Bank.’

The comparison with the financial crisis of 2008 is also often made. De Jong also sees similarities with that time. “It’s still fresh in my mind. But the differences with now and 2008 are much greater. That doesn’t keep me awake.’

The EU has stricter rules

The confidence of the house economist is mainly due to the stricter supervision since 2008. ‘Supervision has been tightened considerably, the requirements for liquidity and solvency have increased considerably and that has changed in the United States.’ De Jong refers, among other things, to financial rules that the US has relaxed, while this has not happened in the EU.

“The causes that were at the root of the problems at banks in the United States and at Credit Suisse do not occur at Dutch banks,” says Knot in conversation with BNR. (ANP / Harold Versteeg)

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