Go to content, to main menu, or to search.

Financial supervision

To ensure that consumers and businesses enjoy the greatest possible protection when they entrust their money to financial institutions, the government supervises the operations of individual institutions and the entire financial system.

Financial supervision act

Supervision of the entire financial system in the Netherlands is laid down in an act of parliament, the Financial Supervision Act. It explains what requirements financial institutions (such as banks and insurance firms) must satisfy and how supervision is organised.

Two supervisors of the financial system

The Minister of Finance has final responsibility for the supervision of the financial system, which is exercised by two organisations on his behalf:

De Nederlandsche Bank (DNB);
the Netherlands Authority for the Financial Markets (AFM).

De Nederlandsche Bank (DNB)

De Nederlandsche Bank (DNB), the Dutch central bank, is responsible for the stability of the entire financial system. It is particularly concerned with:

safe and reliable payment transactions;
sound monetary policy (stable prices);
robust and reliable financial institutions.

DNB checks the health of financial institutions in order to minimise the risk of bankruptcy and prevent problems at one institution spreading to others. Customers must be confident that institutions can meet their financial obligations. To this end, DNB oversees the individual institutions and the financial system as a whole.

Netherlands Authority for the Financial Markets (AFM)

The Netherlands Authority for the Financial Markets (AFM) is responsible for the smooth operation of the capital markets and the correct provision of services to national and international clients. The AFM supervises the way financial institutions serve their clients and how parties deal with each other on the financial markets. Financial institutions may not, for example, provide incorrect or misleading information to their customers. Their customers must also be able to understand the information they receive.

The AFM’s mission is to strengthen consumers’ and businesses’ confidence in the financial markets, both nationally and internationally. In doing so, it protects consumers and strengthens the economic reputation of the Netherlands.

European supervisors

The credit crisis that began at the end of 2008 underlined the need for stronger international supervision of financial institutions and the financial system. Three European supervisors have since been established to oversee specific sectors of the financial market:

the European Banking Authority (EBA);
the European Insurance and Occupational Pensions Authority (EIOPA);
the European Securities and Markets Authority (ESMA).

DNB and the AFM will continue to supervise financial institutions in the Netherlands. The AFM’s supervision of credit rating agencies, however, is gradually being assumed by ESMA.

To oversee the European economy as a whole and the stability of the entire European financial system, the European Union has established a new independent body: the European Systemic Risk Board (ESRB) . The ESRB will report to the European Parliament at least once a year.

Assessment of the financial system by the IMF

The stability of the Dutch financial system is periodically assessed by the International Monetary Fund (IMF). The IMF assesses whether the Dutch financial markets are strong enough to absorb shocks (sudden price movements, fluctuations in interest rates and changes in corporate creditworthiness). The IMF’s assessments of the Netherlands are posted on its website.