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Governance of Financial Institutions edited by Busch, Danny; Ferrarini, Guido; van Solinge, Gerard (31st January 2019)

Part IV Conduct and Culture, 24 Governance Problems in Dutch Financial Institutions from 2007 to 2017

Bas de Jong

From: Governance of Financial Institutions

Edited By: Danny Busch, Guido Ferrarini, Gerard van Solinge

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2015. All Rights Reserved.date: 26 August 2019

Subject(s):
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.

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