Bloomberg News

ABN, ING, Rabobank, SNS Are Dutch Systematically Important Banks

November 29, 2011

Nov. 29 (Bloomberg) -- The four biggest Dutch lenders are systemically important, must hold additional capital and draft plans for an orderly default to limit risk to financial stability, the Finance Ministry said.

ABN Amro Group NV, Rabobank Groep and the banking units of ING Groep NV and SNS Reaal NV, have until 2019 to meet additional capital requirements of 1 to 3 percent of their risk- weighted assets, the Dutch Finance Ministry said in its autumn report today. The lenders must also draw up plans with the central bank to enable an orderly wind-down in the event of failure.

“The Netherlands has a large banking sector that fits in an open economy,” the Finance Ministry said. “Yet the size brings along risk for financial stability and the real economy.”

Balance sheets of banks in the Netherlands outweigh the size of the economy by almost five times, the Dutch central bank said earlier this month. The finance ministry will decide annually which banks qualify as systematically important.

ING, the Netherlands’ biggest financial-services company, is the only Dutch firm among 29 international lenders that faces a separate capital surcharge under plans approved by the Group of 20 nations. Chief Executive Officer Jan Hommen has said he expects his bank will be in “the lower ranges of the score,” under the international plan.

--Editors: Jon Menon, Francis Harris

To contact the reporters on this story: Maud van Gaal in Amsterdam at mvangaal@bloomberg.net; Jurjen van de Pol in Amsterdam at jvandepol@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net


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