DSB Bank, a mid-tier Dutch retail
bank with a 0.5 percent share of mortgages and 15 percent share of
consumer loans, has been taken over by the Dutch central bank after
it had failed to sell the lender to a consortium of local banks.
DSB had €8 billion ($11.9 billion) in assets.
According to a statement on its website, the
central bank said: “Acting in close co-operation, [the central
bank] and the Ministry of Finance attempted to arrange a new start
for DSB under the custody of a consortium of five banks: Rabobank,
ABN AMRO, ING, Fortis Nederland and SNS.
“This attempt was unsuccessful owing to
uncertainty surrounding possible claims on DSB in relation to
excessive loans and failures in fulfilling duty of care, as well as
possible losses on issued loans. The risks were prohibitive and the
application for the emergency regulation proved unavoidable.”
Customers who are unable to access their
payment accounts by ATM will have to wait up to three months to get
their money back via the state’s deposit guarantee scheme.
Deposits, however, guaranteed up to €100,000
under a scheme funded by the Dutch banking industry, will be offset
against debts – which may mean that some customers could see
deposits wiped out altogether.
In a statement, ING said that: “ING regrets
that no alternative was found to prevent this measure. Among other
things, [Dutch] banks will try to support DSB customers by giving
them access to payment accounts.”