'Crisis could hit Dutch banks harder'

30th January 2008, Comments 0 comments

President of the DNB will inform Parliament on Wednesday that the subprime crisis on the US mortgage market could hit Dutch banks much harder if it continues.

30 January 2008

AMSTERDAM – President of the Nederlandse Bank (DNB) Nout Wellink will inform Parliament on Wednesday that the subprime crisis on the US mortgage market could hit Dutch banks much harder if it continues.  

A reliable source told press bureau Reuters this on Tuesday evening.

The mortgage crisis has not yet affected Dutch banks significantly, according to Wellink. He will talk to Parliament on Tuesday during hearings on the international credit crisis.

The source said that Wellink will most likely repeat on Wednesday what he said earlier this month on television programme Buitenhof.

On the programme he urged the Dutch government to prepare for the fact that the effects of developments in the US could blow over to Europe. The DNB refrained from comment on Tuesday.

The hearings have been scheduled to look into the consequences that the crisis could have on the Netherlands, as well as determine whether measures should be taken. Another speaker will be former finance minister Onno Ruding.

Experts from Van Lanschot Bankers, the ABP pension fund, and ABN AMRO are expected to participate in the meeting.

Banks must primarily be more open to financial risks, the leaders of Germany, France, Italy and the UK said during a summit held recently in London.

Especially information provision about credit assessments must be improved, according to the government heads. "The risks for 2008 have increased because of the financial turbulence," they said in a statement.

[Copyright Expatica News + ANP 2008]

Subject: Dutch news

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