IMF Staff Country Reports

Kingdom of the Netherlands–The Netherlands: Financial System Stability Assessment

April 8, 2024

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Kingdom of the Netherlands–The Netherlands: Financial System Stability Assessment, (USA: International Monetary Fund, 2024) accessed November 21, 2024

Summary

The Netherlands FSAP focused on three cross-cutting themes—housing, non-banks, and climate risks—while carrying out a comprehensive review of financial sector oversight. The FSAP reviewed the resilience of the Dutch financial system against a set of conjunctural and structural challenges to the economy: the conjunctural challenges included slowing economic growth amid tighter financial conditions, elevated housing prices, large and interconnected nonbanks with major pension reforms underway, and the shift in securities markets trading from London to Amsterdam since Brexit, which raised Amsterdam to systemic importance for the euro area (EA); and the structural challenges focused on climate issues, including climate physical risks associated with roughly a quarter of the country being below sea level, and nature-related transition risks from an uncertain policy path to bring down nitrogen depositions to contain biodiversity loss and comply with European Union (EU) Directives.

Subject: Climate change, Environment, Expenditure, Financial institutions, Financial sector policy and analysis, Financial sector stability, Insurance companies, International organization, Monetary policy, Pension spending

Keywords: Bank solvency stress test, Climate change, Climate risk oversight, Coverage ratio, Financial sector stability, Global, Insurance companies, Mortgage interest deductibility, Pension spending, Risk analysis

Publication Details

  • Pages:

    70

  • Volume:

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  • DOI:

    ---

  • Issue:

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  • Series:

    Country Report No. 2024/087

  • Stock No:

    1NLDEA2024003

  • ISBN:

    9798400271809

  • ISSN:

    1934-7685