- Regulation of banks — Investment business
This concluding chapter explores the governance problems in Dutch financial institutions from 2007 and onwards. Three cases are especially worth mentioning: the takeover of ABN AMRO Bank by a consortium involving Fortis Bank, Santander, and RBS, and the subsequent rescue of Fortis/ABN by the Dutch State; the collapse of DSB (Dirk Scheringa Beheer) Bank after a bank run; and the nationalization of SNS Reaal (the holding company of bank and insurance companies) by the Dutch State. The DSB case, dealing with a not systemically relevant bank, clearly shows that an unbalanced governance structure can eventually lead to bankruptcy. Board composition and fit and proper testing also matter a great deal. As such, fit and proper testing in the Netherlands is now stricter, taking into account not only individual board members, but also the board as whole.