Netherlands wants banks to play it safe

RNW archive

This article is part of the RNW archive. RNW is the former Radio Netherlands Worldwide or Wereldomroep, which was founded as the Dutch international public broadcaster in 1947. In 2011, the Dutch government decided to cut funding and shift RNW from the ministry of Education, Culture and Science to the ministry of Foreign Affairs. More information about RNW Media’s current activities can be found at https://www.rnw.org/about-rnw-media.

Finance Minister Jan Kees de Jager has commissioned a study to determine how best to set limits on the risky activities banks can legally engage in.

The ministry announced on Wednesday it wants banks to end all activities which are not in the immediate interest of their clients or pose a financial risk to the bank.

The study into limiting excessive risks and reinforcing financial stability was carried out in collaboration with the Netherlands Central Bank and the Financial Markets Authority.

Minister De Jager says it supplements his earlier plans to introduce legislation which would allow the government to separate high street banking and merchant or investment banking in times of crisis.

(gsh/imm)

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