Kingdom of the Netherlands-The Netherlands: Financial Sector Assessment Program- Technical Note on Banking Supervision

June 18, 2024

Preview Citation

Format: Chicago

Kingdom of the Netherlands-The Netherlands: Financial Sector Assessment Program- Technical Note on Banking Supervision, (USA: International Monetary Fund, 2024) accessed September 27, 2024

Summary

Supervision of less significant institutions (LSIs) is effective in the Netherlands. The De Nederlandsche Bank’s (DNB) supervisory approach to LSI supervision is intrusive and transparent. It builds on well-developed supervisory tools which support strategically focused, ongoing supervisory dialogue with banks. The supervisory framework blends the robust SSM/EU framework with Dutch elements, enriching the spectrum of supervisory techniques and tools. The LSI supervisory capacity is founded in a solid knowledge base of a broader DNB and it is used to cover critical topics, which include, (i) comprehensive and thorough assessments of risk managements’ outcomes, (ii) deep dives into governance, behavior and culture and (iii) the development of the nature risk agenda. DNB and the Autoriteit Financiële Markten (AFM), a conduct supervisor, cooperate very closely while complementing prudential and conduct supervision, to tackle central issues, including Interest-Only (IO) Mortgages. DNB’s LSI supervision also factors-in macroprudential deliverables. Furthermore, the supervisory process relies on strong enforcement and thorough licensing processes, on side of DNB. A vigorous governance of DNB’s LSI supervision includes 2nd and 3rd lines of defense.

Subject: Bank supervision, Credit risk, Financial institutions, Financial regulation and supervision, International organization, Liquidity requirements, Loans, Monetary policy, Mortgages

Keywords: Asset quality, Bank supervision, Banking sector in The netherlands, Credit risk, Global, Liquidity requirements, Loans, LSI supervision, Mortgages, Risk-weighted assets, Staff team of the International Monetary Fund

Publication Details

Pages:

45
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2024/168
Stock No:

1NLDEA2024004
ISBN:

9798400279362
ISSN:

1934-7685

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